Promoting 'Steel GX,' a K-GX Signature Project… Driving Regional Growth through a Decarbonized Ecosystem
Securing Economical 'Clean Energy' and 'Creating a Low-Carbon Market' are Keys to Completing the Decarbonized Ecosystem
Expanding from the Southeastern Cluster Demonstration to the Southwestern Region… Contributing to the Green Transition of Korea's Manufacturing Industry
On October 7, POSCO group (CHANG In Hwa, CEO of POSCO Holdings) attended the 'Korean Green Transformation (K-GX) Strategy' event presided over by the President and announced its plan to 'Build a Decarbonized Industrial Ecosystem based on Steel GX,' a K-GX signature project.
* Korean Green Transformation (K-GX) Strategy: A national strategy aimed at simultaneously achieving carbon neutrality and economic growth by promoting the green transition across all industries under three main directions: 'New Growth Engine GX, GX for All, and Sustainable GX.'
POSCO group emphasized that Steel GX must be approached at the level of an 'industrial ecosystem' where clean energy, technology, markets, and policies are organically connected, going beyond the efforts of individual companies.
Accordingly, POSCO group will collaborate with the government to build an ecosystem encompassing everything from clean energy supply to the utilization of low-carbon steel, centered on 'HyREX,' its proprietary Korean hydrogen reduction steelmaking technology. POSCO group plans to continue its transition to a low-carbon system by promoting technological development and demonstration in phases.
In particular, POSCO group stated that the timely supply of stable and economical clean energy is essential, considering the characteristics of the hydrogen reduction steelmaking process, which operates continuously for 24 hours. The company explained that a true process transition and the success of Steel GX are only possible when supported by large-scale electricity and clean hydrogen.
Furthermore, the creation of a 'Green Premium Market,' where the value of low-carbon steel can be properly recognized and rewarded, was presented as an important task. A complete decarbonized industrial ecosystem can only be built when accompanied by policy support such as the standardization of low-carbon steel and the Act on the Promotion of Purchase of Green Products.
To this end, POSCO group proposed 'TIMUP,' a public-private cooperation system encompassing Technology, Installation, Market, Utility, and Policy. Under this framework, roles are divided: companies are responsible for developing innovative technologies and transitioning facilities, while the government supports the foundation for clean energy supply, the creation of low-carbon markets, and infrastructure development.
Additionally, POSCO group proposed the Southeastern Cluster centered around Pohang as the starting point for Steel GX. By 2028, it plans to build a HyREX demonstration facility with an annual capacity of 300,000 tons and create a steel decarbonization cluster connecting the clean hydrogen supply chain with the Pohang and Ulsan industrial complexes. Through this, the company expects an economic effect of approximately KRW 6 trillion, the creation of 14,000 jobs, and an additional carbon reduction of 560,000 tons annually in the Southeastern region alone.
After verifying the Southeastern Cluster model centered on Pohang, which will preferentially introduce the HyREX demonstration facility, POSCO group plans to gradually expand Steel GX to the Southwestern region centered on Gwangyang in the future.
LEE Ju Tae, President of POSCO Holdings, stated, "Steel has grown alongside Korea's manufacturing industry as the 'rice of industry' for over half a century." He added, "Under the government's K-GX strategy, the public and private sectors will team up to create a decarbonized industrial ecosystem based on the creation of a low-carbon market and the supply of economical clean energy. We will fulfill our role in achieving national carbon neutrality and the green transition of the manufacturing industry while growing together with local communities."
POSCO group plans to not only enhance the competitiveness of the steel industry but also support the green transition of high-tech strategic industries such as mobility, AI data centers, and robotics, thereby contributing to the GX of Korea's overall manufacturing industry.