POSCO Pohang steel plant

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POSCO Pohang steel plant, also known as Pohang Iron & Steel, is a steel plant in Pohang, North Gyeongsang, South Korea that operates ironmaking, blast furnace (BF), basic oxygen furnace (BOF), electric arc furnace (EAF), and direct reduced iron (DRI) technology.

Location

The map below shows the exact location of the plant in Pohang, North Gyeongsang, South Korea:

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  • Location: 6262, Donghaean-ro, Nam-gu, Pohang-si, Gyeongsangbuk-do, Republic of Korea
  • Coordinates (WGS 84): 36.00931, 129.394508 (exact)

Background

Construction of the Pohang plant began on 01 April, 1970 and became operational on 03 July, 1973 with a capacity of 1.03 mtpa. After four phases of expansions, the crude steel capacity increased to 9.1 mtpa by 1983.[1] On 29 December, 2021, the blast furnace 1 was permanently shut down. The company announced its plan to turn the furnace into a museum. The plant continues to operate with the remaining three blast furnaces.[2]

POSCO has formulated a 2050 Carbon Neutrality Roadmap, outlining strategies in three core areas: Green process, Green product, and Green Partnership. The goal is to reduce carbon emissions 30% by 2035, 50% by 2040 from average emissions benchmark of 78.8 million tons between 2017-19, and to achieve carbon neutrality by 2050.[3]

On 06 September, 2022, various facilities at the plant was affected during Typhoon Hinnamnor, leading to shutting down of the plant temporarily.[4] The plant resumed operations 135 days after the flood.[5][6]

2050 Carbon Neutrality Roadmap

POSCO is building a first of its kind pilot plant that use fluidized bed reduction reactors (HyREX), developed in collaboration with Primetals Technologies. The construction of the pilot plant with a capacity of 300 ttpa was expected to begin in June 2023.[7]The facility is scheduled for completion in 2026 or early 2027. With HyREX, hydrogen-based direct reduced iron produced will be melted in an electric smelting furnace to produce steel.[8][9] POSCO intends to break ground with a full-scale hydrogen-based steelmaking plants by 2031.[10] POSCO Pohang Works plans to replace its existing production methods with HyREX in 2033.[11][12] In June 2024, it was announced that the pilot HyREX unit was opened.[13] The pilot plant has a molten iron production capacity of up to 24 tonnes per day, emitting only 400 kilograms of carbon per metric ton.[14]

POSCO is also planning to invest in an electric furnace (EAF) each for its Pohang and Gwangyang steelworks. The full-scale HyREX expansion project is expected to produce 2.5 million tonnes of hot metal annually with the aim of achieving carbon neutrality. The news article from May 2023, mentioned that it was unlikely that annual crude steel production will increase from the two facilities. Operations were scheduled to start from 2027.[15][16]

Under the company's 2050 carbon neutrality roadmap POSCO plans to phase-out traditional blast furnace technology by 2050 and adopt renewable and green hydrogen-based steelmaking technology in its plants in South Korea.[17][18] POSCO plans to develop the hydrogen reduction steel plant by reclaiming land from sea which is expected to be completed by 2041 and begin full operation of hydrogen reduction steel facility by 2050.[19]

POSCO is expanding the highly polluting blast furnace technology overseas to India and Indonesia.[18] Until 2050, POSCO plans on adopting blast furnace-based bridge technologies.[20]

Low-emissions/green steelmaking

This steel plant is associated with a green steel project tracked in the Green Steel Tracker. Details about the project are included below.

Table 1: Green Steel Project Details

All references for the above data are available in the Green Steel Tracker.
Project 1
Project name HyREX
Company POSCO Holdings
Company has climate goals? Yes
Location Pohang, South Korea
Project website Site
Project scale Full scale
Project status Announced
Year to be online 2033
Technology to be used H-DRI
Technology details H-DRI in Fluidized Bed Reactors + Electrical Smelting (ESF) for steel
Iron production capacity (million tonnes per year) Not stated
Steel production capacity (million tonnes per year) 1
CO2 capture (million tonnes CO2 per year) Not applicable
Hydrogen generation capacity (MW) Not applicable
Investment size (m USD) Not stated
Partners Primetals Technologies
Date of announcement 2022-08-05

Plant Details

Table 2: General Plant Details

Announced date Construction date Start date Workforce size Power source Iron ore source Coal source
1967-06-30[21] 1967-10-03[21] 1973[22] 6920[23] unknown Imported from Australia[24] Tanoma coal mine[25]

Table 3: Ownership and Parent Company Information

State-owned entity status Parent company Parent company PermID Parent company GEM ID Owner Owner company PermID Owner company GEM ID
Partial POSCO Holdings Inc 4295881204 E100000000953 POSCO Holdings Inc[26] 4295881204 E100000000953

Table 4: Process and Products

Steel product category Steel products Steel sector end users ISO 14001 ISO 50001 Responsible steel Main production equipment
finished rolled[27] galvanized, wire rod, plate, stainless, cold rolled, hot rolled[27] automotive, building and infrastructure, energy, steel packaging, tools and machinery, transport[27] 2024-07-30[28] 2021[29] 2022-10-12[30] BF; DRI; BOF; EAF; Iron other/unspecified

Table 5: Plant-level Crude Steel Production Capacities (thousand tonnes per annum)

1Please see our Frequently Asked Questions page for an explanation of the different capacity operating statuses.
Capacity operating status1 Basic oxygen furnace steelmaking capacity Electric arc furnace steelmaking capacity Nominal crude steel capacity (total)
announced 2500[31][32] 2500[31][32]
operating 17401[33][32][34][35] 300[36] 17701[33][32][34][36][35]

Table 6: Plant-level Crude Iron Production Capacities (thousand tonnes per annum)

1Please see our Frequently Asked Questions page for an explanation of the different capacity operating statuses.
Capacity operating status1 Blast furnace capacity Sponge iron/DRI capacity Other/unspecified iron capacity Nominal iron capacity (total)
announced 2500[32] 2500[32]
mothballed 1300[37] 1300[37]
operating 12900[38][39] 300[40] 4300[41][42] 17500[40][41][42][38][39]

Table 7: Upstream Products Production Capacities (thousand tonnes per annum)

Sinter Coke Pellets
>0[43] 1500[43][44][45] NF

Table 8: Actual Plant-level Crude Steel Production by Year (thousand tonnes per annum)

Year BOF production Total (all routes)
2019 15876[46] 15876[46]
2020 15629[46] 15629[46]
2021 16655[47] 16655[47]
2022 14885[47] 14885[47]
2023 15522[47] 15522[47]

Table 9: Actual Plant-level Crude Iron Production by Year (thousand tonnes per annum)

Year BF production DRI production Other/unknown iron production
2019 unknown unknown unknown
2020 unknown unknown
2021 unknown unknown
2022 unknown unknown
2023 unknown unknown

Unit Details

Table 10: Blast Furnace Details

Unit name Status Construction date Start date Furnace manufacturer and model Current size Current capacity (ttpa) Decarbonization technology Most recent relining
BF 1 mothballed[37][35] 1970[48] 1973[37][49][50] 1660.0 m3[51] 1300[37] Top gas captured to fuel power plant[52] 1993-02-26[53]
BF 2 operating[54][55] 1974[48] 1976[23][50] POSCO[56] 2550.0[57] 2300[39][38] Top gas captured to fuel power plant; Upgraded in 2016 to an "eco-friendly" AI smart furnace, with little specific information about how the use of AI will reduce emissions.[52][58] 2017-03[59]
BF 3 operating[54][55] 1976[48] 1978[60][23] POSCO Parallel Hopper top[61][56][62] 5600.0 m3[60][57] 5300[39][38] Top gas captured to fuel power plant; Upgraded in 2017 to an "eco-friendly" smart furnace, with little specific information about how the use of AI will reduce emissions.[63][52] 2017-06-06[64]
BF 4 operating[54][55] 1979[48] 1981[50] Saint-Gobain (parts) Coranit Ceramic Cup[65][65] 5600.0 m3[66] 5300[39][38] Top gas captured to fuel power plant[52] 2024-07-02[67]

Table 11: Direct Reduced Iron Furnace Details

Unit name Status Announced date Construction date Start date Furnace manufacturer and model Furnace type Current capacity (ttpa) Reductant
unknown DRI (1) operating[68] 2022-06-26[69] 2024[68][70] Primetals HyREX[40][40] fluidized bed[68][71] 300[40] hydrogen[40]
unknown DRI (2) announced[32] 2025[70] 2027[70] Primetals HyREX[40][70] fluidized bed[40] 2500[32] [40]

Table 12: Electric Arc Furnace Details

Unit name Status Announced date Construction date Start date Furnace manufacturer and model Current capacity (ttpa) Current size (tonnes)
unknown EAF (1) announced[32] 2025[70] 2027[70] Primetals and POSCO Electric smelting furnace (Smelter)[69][69] 2500[31][32] 36.0[70]
unknown EAF (2) operating[70] 2022-06-26[69] 2024[70] Primetals and POSCO Electric smelting furnace (Smelter)[69][69] 300[36] [69][72]

Table 13: Electric Arc Furnace Feedstock Details

Unit name Scrap-based % scrap % DRI % HBI % sponge iron (unknown if DRI or HBI) % basic/merchant pig iron % granulated pig iron % pig iron (unknown if basic/merchant or granulated % other iron
unknown EAF (1) yes[73] >0[73] unknown unknown unknown unknown unknown unknown unknown
unknown EAF (2) yes[73] >0[73] >0[74] unknown unknown unknown unknown unknown unknown

Table 14: Basic Oxygen Furnace Details

Unit name Status Start date Furnace manufacturer and model Current capacity (ttpa) Current size
unknown BOF (1) operating[75] 1973[50] KOBM[76] 883[33][32] 112.0 tonnes[76]
unknown BOF (2) operating[75] 1978[76] LD Converter[76] 2769[35][34][33][32] 351.0 tonnes[35][77][41]
unknown BOF (3) operating[75] 1978[76] POSCO E&C LD converter[44][76] 2769[35][34][33][32] 351.0 tonnes[77]
unknown BOF (4) operating[75] 1978[76] LD Converter[76] 2769[35][34][33][32] 351.0 tonnes[78]
unknown BOF (5) operating[75] 1978[76] POSCO E&C LD converter[44][76] 2769[35][34][33][32] 351.0 tonnes[77]
unknown BOF (6) operating[75] 2011[76] LD Converter[76] 2721[35][34][33][32] 345.0 tonnes[77]
unknown BOF (7) operating[75] 2011[76] LD Converter[76] 2721[35][34][33][32] 345.0 tonnes[77]

Articles and Resources

Additional data

To access additional data, including an interactive map of steel power plants, a downloadable dataset, and summary data, please visit the Global Iron and Steel Tracker on the Global Energy Monitor website.

References

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