인터넷언론을 대표하는 뉴스투데이가 8월23일자부터 품격있는 영문기사를 서비스합니다. 영문기사는 뉴스투데이가 직접 취재한 기사를 뉴욕타임스 스타일의 영문기사로 재작성한 것으로, 국내 인터넷언론 중에서는 처음으로 시도하는 것입니다. 고품격 언론을 표방하는 뉴스투데이는 이번 영문기사 서비스를 통해 언론의 품격을 한 단계 더 높일 것이며, 독자들에게 보다 다양한 콘텐츠를 제공할 것임을 약속드립니다. 많은 성원 부탁드립니다. <편집자 주>

 

 

 

SEOUL (News2day) - As global emphasis on eco-friendly initiatives grows, POSCO Group, a leader in the steel industry headed by Chairman Jeong-woo Choi (photo), is also ramping up efforts to enhance its eco-friendly steel production capabilities and strengthen its supply chain for raw materials.

 

According to industry sources, POSCO and many other steel companies have formulated a long-term roadmap to develop eco-friendly steel production capabilities by securing the ultimate eco-friendly steelmaking technology known as 'hydrogen-based direct reduction iron' by 2050.

 

This innovative technology uses hydrogen instead of fossil fuels to produce iron, resulting in no carbon emissions as hydrogen reacts with oxygen to form water, unlike fossil fuels like coal or natural gas which produce carbon dioxide (CO2) when reacting with iron ore.

 

However, since the hydrogen-based direct reduction iron technique is a long-term project, POSCO is also focusing on enhancing its partially eco-friendly steelmaking technique called the 'electric arc furnace' (EAF) and strengthening the supply chain of raw materials required for EAF operation.

 

The electric arc furnace utilizes heat generated by electric current or high-frequency induction. This method offers continuous high temperatures, easy temperature control, and minimal losses due to melting, making it advantageous.

 

Conventional steelmaking methods involve using blast furnaces to extract molten iron from iron ore or using electric arc furnaces to produce molten iron by inputting iron scrap (ferrous scrap) or direct reduced iron (DRI), which is an essential raw material for producing high-quality steel. POSCO has mainly utilized blast furnaces over the past decades, resulting in carbon emissions along with molten iron production.

 

To mitigate the environmental impact, POSCO is implementing carbon capture and utilization (CCU) technology in blast furnaces to minimize carbon dioxide emissions. However, recent global trends are shifting towards increasing the proportion of electric arc furnace operations instead of focusing solely on blast furnace improvements.

 

In line with this trend, POSCO is currently pushing for the expansion of its electric arc furnace facilities. Additionally, to secure a stable supply of iron scrap, POSCO is collaborating with its affiliate POSCO International to acquire hot briquetted iron (HBI) from Australia. HBI, a substitute for iron scrap, contains 93% iron content and is primarily used for electric arc furnace steelmaking.

 

Furthermore, in early this year, the Ministry of Trade, Industry and Energy announced plans to stabilize the supply of iron scrap within the domestic steel industry. These measures are seen as supporting POSCO's electric arc furnace expansion, which is expected to increase the demand for iron scrap domestically.

 

 

In a major development, POSCO revealed plans in February to invest around 600 billion KRW to establish a new electric arc furnace with a capacity of 2.5 million tons at its Gwangyang Steelworks, aiming for completion and operation by 2026.

 

Although the quality of molten iron produced by the electric arc furnace is slightly lower compared to blast furnaces, the advantage lies in a 25% reduction in carbon emissions. Therefore, POSCO's decision is interpreted as a significant step toward enhancing eco-friendly facilities.

 

With the reinforcement of electric arc furnace facilities, the demand for iron scrap is projected to increase significantly. According to a report by POSCO's Economic Research Institute, South Korea used a total of 28.3 million tons of iron scrap in 2021, with 4 million tons being imported.

 

However, at that time, POSCO's electric arc furnace usage ratio was relatively low, standing at 15% compared to blast furnace usage at 85% in 2021.

 

POSCO aims to increase the electric arc furnace usage ratio to 30% by 2026.

 

Industry insiders express concerns that the increase in electric arc furnace facilities by POSCO might lead to friction with other steelmakers such as Hyundai Steel and Dongkuk Steel, which already operate electric arc furnaces and compete for iron scrap supply amid limited availability.

 

In response, POSCO is planning to secure iron scrap supply to operate its electric arc furnaces smoothly and collaborate with related companies.

 

 

To address these challenges, POSCO's strategy includes producing HBI and securing iron scrap through its affiliate POSCO International. HBI is a processed form of direct reduced iron (DRI) that can be utilized in electric arc furnace processes. DRI is a semi-finished product with around 90% iron content obtained by separating oxygen from iron ore using natural gas as a catalyst.

 

To achieve this, POSCO announced plans to establish a 2 million-ton capacity DRI production site in Australia in 2021, with the goal of using HBI in its electric arc furnace operations.

 

In addition, POSCO International is working to support POSCO's iron scrap supply chain enhancement by investing around 20 billion KRW by 2025 to establish scrap collection bases nationwide, providing around 500,000 tons of iron scrap annually to POSCO.

 

To facilitate this effort, POSCO International has already established its first iron scrap collection base in Hwaseong, Gyeonggi Province, in April of the previous year and plans to build a total of nine collection bases by the end of this year.

 

Common methods for securing iron scrap include collecting iron scrap fragments from various small and medium-sized steel producers or obtaining high-quality iron scrap from large steel companies. POSCO International aims to secure iron scrap by partnering with smaller steel scrap suppliers.

 

Furthermore, to support small and medium-sized enterprises, POSCO International plans to provide state-of-the-art compactors and environmentally friendly electric excavators for lease at minimal equipment rental costs. Additionally, it will purchase processed iron scrap products from these enterprises to assist with their operational stability.

 

A POSCO International representative stated, "We will strive to develop forward-thinking and eco-friendly platform businesses by incorporating new ideas into existing industries."

 

The government is also actively supporting POSCO's efforts to establish eco-friendly steel production infrastructure. The Ministry of Trade, Industry and Energy is focusing on stabilizing the supply of iron scrap by 2030 to support eco-friendly initiatives in the steel industry.

 

A ministry official emphasized the importance of recognizing iron scrap as a vital raw material for industry rather than mere waste. The ministry plans to create a supply management foundation by establishing various statistical data and quality standards, introducing advanced scrap sorting methods, and implementing institutional measures to strengthen cooperation between companies in the iron scrap supply chain.

 

These initiatives by POSCO and government support demonstrate a collective commitment to building a greener future for the steel industry.

 

 

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By Ji-wan Nam, a reporter of News2day / ainik@news2day.co.kr

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