South Korea-based steelmaker POSCO will invest KRW 20 trillion ($14.1 billion) to reduce its carbon emissions from its operations, according to a report by Nikkei Asia.
The company plans to build one electric arc furnace each at its Gwangyang and Pohang Works. The electric arc furnaces, which will replace blast furnaces which will be shut down, will start operations in 2025 and 2027, respectively.
The company currently uses electric arc furnaces for only certain products such as stainless steel, while its blast furnaces produce higher quality steel.
POSCO aims to decrease its overall carbon emissions to 71 million mt by 2030 from 78.5 million mt last year, while still expanding its production capacity.
The company will introduce new technology that can enable coking coal to be replaced with green hydrogen. POSCO may use this technology at the second blast furnace to be built in Indonesia and one blast furnace in India over the next five years, SteelOrbis understands.