South Korea has approved the site for POSCO’s hydrogen-based DRI plant

South Korean authorities have finally approved the site for POSCO’s project to build a hydrogen-based steel complex in Pohang. According to SteelOrbis, citing local media, South Korea’s Ministry of Land, Infrastructure, and Transport has approved amendments to the Pohang National Industrial Complex plan, paving the way for the creation of a special industrial zone near the company’s existing steel plant.

This involves creating a separate 1.34 million-square-meter site by reclaiming coastal land. Under the approved project, the site, which previously had no industrial designation, will be transformed into an exclusive industrial zone. It is expected to become part of a complex that will combine metallurgical and energy infrastructure. At the same time, the timeline for developing the industrial complex has been extended from 2030 to 2041, reflecting the long-term nature of the transformation.

According to POSCO, this is the location where its hydrogen-based steel production project will be implemented, specifically where the HyREX pilot facility will be located. The technology involves producing molten pig iron by reducing fine iron ore with hydrogen, followed by smelting in an electric furnace. The company plans to commission the pilot plant by 2028 with an annual capacity of 300,000 tons.

The approval was the result of a lengthy administrative process that began in 2023 and included environmental assessments and consultations with several ministries. The land reclamation project faced opposition from local residents and environmental groups due to concerns about its impact on marine ecosystems. POSCO, for its part, states that it will use only stabilized materials and that the environmental impact will be limited.

The project is seen as an important step in South Korea’s strategy to commercialize hydrogen-based steel production by around 2030. At the same time, key challenges remain in securing hydrogen supplies, accessing low-carbon electricity, and ensuring environmental oversight of infrastructure development.

As a reminder, POSCO is preparing to launch a new electric arc furnace with a capacity of 2.5 million tons of steel per year at the Gwangyang plant in Gwangyang in June 2026. Construction of the facility began in 2024 and was completed in 2025.