POSCO to invest $88 billion in emission reduction projects by 2030

South Korean steelmaker POSCO has unveiled plans to invest 121 trillion won ($88 billion) by 2030, including 45 trillion won ($35 billion) in the international market, in new emissions reduction projects. This is reported by AlphaBIZ.

In particular, 29 trillion won ($21.2 billion) of the total amount will be invested in environmentally friendly steel.

In the steel sector, the company will focus investments in three main areas: carbon neutrality, demand response, and capacity recovery. POSCO plans to transition to a low-carbon production system through initiatives such as HyREX and will also finance environmental compliance measures, including emissions trading systems.

In addition, POSCO aims to expand its electrical steel production capabilities to meet the growing demand for electric vehicles and restore production productivity by investing in blast furnace modernization and rationalization of steelmaking and rolling equipment.

The steelmaker plans to allocate 16 trillion won ($12 billion) for renewable energy projects and 1 trillion won ($730 million) for blue hydrogen production initiatives related to steelmaking.

The company has received government support for its investment plans. In particular, according to Green Car Congress, the administrative procedures for POSCO Pohang Steelworks’ 20 trillion won ($14.6 billion) hydrogen-based steel project have been reduced by a total of 11 months.

As GMK Center reported earlier, POSCO has invested KRW 530 billion ($381.7 million) in the modernization of blast furnace No. 4 in Pohang. The modernization included the replacement of outdated equipment and the installation of a smart control system, which increased blast furnace productivity and reduced production costs.