International Steel Mills
CRU: Posco begins construction of EAF
February 9, 2024
South Korean integrated steelmaker Posco has started building a 2.5-million-metric-ton-per-year (Mt/y) electric-arc furnace (EAF) at its Gwangyang works, a key stage in the company’s transition to becoming a green steel producer.
Speaking at the groundbreaking ceremony, CEO Kim Hag-dong said: “Amid the rapidly changing business environment due to global climate crises and trade regulations, we will establish a swift and competitive low-carbon production system starting with the launch of this electric furnace.”
The EAF is scheduled to be completed by the end of 2025, with full-scale operation reached the following year and an anticipated reduction of about 3.5 Mt/y of carbon dioxide emissions compared to traditional blast furnace (BF) methods, the Maeil business newspaper reported.
To overcome the limitations of EAFs in producing high-grade steel, Posco plans to apply its proprietary blending technology. The Gwangyang project includes developing HyREX reduction technology using hydrogen instead of fossil fuels and utilising the company’s Finex iron making process.
Directors approved the EAF’s construction in February at a capex cost of around KRW600 billion ($452 million).
This article was first published by CRU. Learn more about CRU’s services at www.crugroup.com/analysis.
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