South Korea's top steelmaker POSCO on Sunday launched the first product from its low-carbon brand Greenate.
Greenate features distribution-type products that emit lower CO2 emissions through the use of green production processes after certification by a leading institution, with customers who use them recognizing such eco-friendly performance.
In 2021, global steelmakers like those in Europe and Japan adopted low-carbon distribution-type products that set emission-cutting performance for specific steel materials, but POSCO is the first to do so in South Korea.
The calculation of CO2 emissions and reductions was based on the Greenhouse Gas Protocol, the most widely used international standard, and verification came from DNV UK, one of the world's top three certification bodies.
POSCO was recognized for cutting 590,000 tons of CO2 emissions from January to August last year by raising the use of pellets in its blast furnaces and scrap metal in its converters.
Pellets are raw materials processed into balls of a certain size after iron ore is crushed and sorted. A higher volume of pellets used lowers the iron ore needed, cutting the amount of fossil fuels used in processing before putting the iron ore into blast furnaces.
To begin with, Greenate supplied its first low-carbon product to LG Electronics Inc., shipping 200 tons of steel products for use as dryer parts and materials. The steelmaker will expand its supply of low-carbon steel products for use in household appliances.
Samsung Electronics Co. is also considering preferential use of low-carbon steel in its premium ovens. In a first for the industry, POSCO recently signed a three-year supply contract with the electronics giant to supply steel products for use in home appliances and electrical sheets.
On Thursday, the steelmaker invited representatives from major domestic clients to POSCO Center in Seoul for a briefing on its launch of low-carbon products, releasing the company's roadmap for achieving carbon neutrality by 2050 and a low-carbon product line to debut in 2030.
To cut emissions, POSCO will upgrade its low-carbon operational technology based on its blast furnaces by directly making molten steel in blast furnaces from 2026 by building new electric-powered furnaces or mixing such steel with molten iron produced in converters.
By 2030, POSCO will finish the development of related commercial technology after completing in 2026 a test facility for HyREX (hydrogen reduction), its hydrogen-reducing steelmaking technology, and applying it its plants in stages. HyREX is an innovative technology that slashes CO2 emissions by using hydrogen instead of coal and other fossil fuels.
