South Korean steelmaker POSCO’s hydrogen-based steel plant site in Pohang has received final approval from South Korea’s Ministry of Land, Infrastructure and Transport, according to local media reports.
The ministry has announced that it has approved revisions to the Pohang National Industrial Complex plan, enabling the development of a dedicated 1.34 million m2 site through coastal reclamation near POSCO’s existing steelworks.
The approved project will convert previously undesignated public waters into an exclusive industrial zone and is expected to develop into a complex combining steelmaking and energy infrastructure. The industrial complex development period has also been extended from 2030 to 2041, reflecting long-term transformation plans.
According to POSCO, the site will host its hydrogen-based steelmaking project, including the HyREX pilot facility, which will produce molten iron by reducing fine iron ore with hydrogen and melting it in an electric furnace. The company targets commissioning a pilot plant with an annual capacity of 300,000 mt by 2028.
The approval follows a lengthy administrative process since 2023, including environmental impact assessments and consultations with multiple ministries. The reclamation plan faced opposition from local residents and environmental groups due to concerns over marine ecosystems, though POSCO indicated that only stabilized materials will be used and that environmental impacts are expected to be limited.
The project is seen as a key step in South Korea’s strategy to commercialize hydrogen-based steelmaking around 2030, though challenges remain regarding hydrogen supply, low-carbon power infrastructure and environmental management.