POSCO Outlines Strategy to Energize Steel Decarbonization and Battery Materials Agenda

POSCO, a prominent South Korean steel manufacturer, is making significant strides in its mission to decarbonize the steel industry through strategic partnerships with technology giants LG Electronics and Samsung Electronics. The company's comprehensive strategy encompasses integrating hydrogen usage and collaborating with its partners to offer innovative, lower-emission steel products.

To drive a sustainable shift in steel production, POSCO has undertaken a comprehensive overhaul of its infrastructure. This multifaceted approach involves adopting environmentally friendly raw materials, implementing carbon capture and recycling initiatives, and incorporating hydrogen-based reduction methods in steelmaking. These transformative measures are detailed in a report released by the Pohang-based company on August 28.

In its commitment to sustainability, POSCO has introduced the Greenate brand, encompassing a range of certified lower-emission steel products. This brand umbrella extends to steel marketing, low-carbon steel technology, and the development of hydrogen production infrastructure. Notably, the Greenate brand will also encompass POSCO's secondary battery materials business.

POSCO's strategic emphasis on hydrogen positions it as a key advocate and developer of this eco-friendly fuel. This is particularly notable given smaller steel producers like SSAB and Salzgitter investing in electrolyzers to secure green hydrogen for new direct-reduced iron plants slated to start operations in the next three years. Among global steel producers, excluding Chinese conglomerates, POSCO ranks as the third largest, trailing behind ArcelorMittal and Nippon Steel, both with long-term steel decarbonization plans.

In a significant partnership, LG Electronics is the first purchaser of POSCO's Greenate-certified steel. Initially, this agreement covers steel orders for use in dryers, with LG considering expanding low-carbon steel usage in household appliances.

Samsung Electronics is another pivotal collaborator, working closely with POSCO to supply Greenate-certified steel for premium ovens. This aligns with a new long-term contract for high-strength, high-corrosion, and electric steel plate products designed for home appliances.

Under the Greenate brand, POSCO aims to unify its environmentally friendly steel products, including brands like Autopos, INNOVILT, and Greenable. The existing Greenate-certified steel adheres to a mass-balanced methodology, attributing carbon emissions reductions to specific product volumes, similar to practices in Europe and Japan.

According to POSCO, Greenate-certified steel effectively reduces carbon emissions by distributing emissions savings achieved through low-carbon production processes and the use of such steel. Buyers of this certified product are acknowledged for their contributions to carbon emissions reduction.

The credibility of Greenate-certified steel has been endorsed by Det Norske Veritas UK, following evaluations at POSCO's Pohang and Gwangyang steel works.

Looking ahead, POSCO envisions reducing Scope 3 emissions for end-users by selling steel alongside renewable energy credits. The offering of Greenate-certified steel will continue until a new electric arc furnace becomes fully operational in Gwangyang by 2026. Upon reaching this milestone, steel with even greater emissions reductions, known as carbon-reduced steel, will be available. POSCO is actively exploring various steel processes and methods to potentially introduce additional supplies of carbon-reduced steel.