South Korean steelmaker Pohang Iron and Steel Co. (POSCO) has announced that it has decided to invest about KRW 600 billion ($461.31 million) to build a new electric arc furnace at the Gwangyang Works to transition to a low-carbon steel production system.
The construction of the furnace, which will have an annual capacity of 2.5 million mt, is expected to begin in January 2024. The furnace is scheduled to commence in 2026.
The company aims to reduce carbon emissions by means of the electric arc furnace until shifting to hydrogen-reduced steelmaking technology.
POSCO started designing a hydrogen-reduced steelmaking pilot plant using hydrogen reduction (HyREX) technology last year, in line with its target to become carbon-neutral in 2050, as SteelOrbis previously reported. The plant is scheduled to be operational in 2030. HyREX technology uses hydrogen instead of fossil fuels, reducing carbon emissions in the steelmaking process.
