POSCO Deputy Prime Minister Choi Sang-mok accelerates the start of hydrogen reduction steel construction

The start of construction for POSCO’s hydrogen reduction steel project will take about a year. The government announced that it would provide support to ensure that the POSCO investment plan worth 73 trillion would be delivered without a hitch.

Deputy Prime Minister and Minister of Strategy and Finance Choi Sang-mok visited POSCO Pohang Steel Works on the 17th and held an on-site meeting with the POSCO Group to promote investment. This time is the first visit to the site since Deputy Prime Minister Choi announced last month that he would actively solve problems related to investment projects to encourage corporate investment. Relevant ministries were also present at the visit, including the Minister of Oceans and Fisheries and the Senior Deputy Minister of Trade, Industry and Energy.

Previously, the government announced that it would support the rapid progress of private investment projects worth a total of 93 trillion won through investment renewal measures twice in November 2023 and in March this year. For the 20 trillion hydrogen reduction steel project promoted by POSCO, the government shortened the administrative procedures by a total of 11 months by freeing up the maritime traffic safety judgment and speeding up the process of presenting the environmental impact assessment and a recall master plan. Therefore, the start of construction is expected to be pushed back to June 2025.

Hydrogen reduction steelmaking is a technology that makes iron using hydrogen as a fuel instead of fossil fuels, and experts estimate that greenhouse gas emissions are reduced by around 97% compared to existing blast furnaces. POSCO plans to acquire land for a hydrogen reduction steel mill measuring 1.35 million m2 (410,000 pyeong) by reclaiming the shared water surface of Yeongil Bay, which is adjacent to the steel mill.

The government will increase the amount of green finance next year from 6 trillion won to 9 trillion won to develop hydrogen reduction steel. Financial support for research and development of key carbon-neutral technology (R&D) will increase from 2 trillion won to 2.2 trillion won. In addition, tax support will be strengthened, such as raising the rate of return for more investment and extending the sunset of the temporary investment tax credit, and will promote the extension of the sunset of the tax credit for national strategic technology .

The government expects that when the hydrogen reduction steelmaking project is completed in 2050, it will have a total investment impact of 40 trillion won and achieve carbon neutrality in steel using hydrogen reduction steelmaking technology. .

Jeong Ki-seop, CEO of POSCO Holdings, said, “We will unceasingly implement the investment of 73 trillion planned by 2030, including the hydrogen reduction steel project,” and added, “Amid circumstances difficult internally and externally, we will continue to provide policy attention and support to improve the investment climate for companies.” “Please do it,” he asked.

Vice Prime Minister Choi said, “We will support the 73 trillion won investment plan, including new business areas such as hydrogen reduction steel, which will be implemented without stopping.” ministries and reflected in the 3rd investment action plan expected to be announced in November.” “I will do it,” he said.