Primetals Technologies and POSCO have signed an MoU to develop a demonstration plant. The demonstration plant is an important part of POSCO’s commitment and long-term plans of replacing its current blast furnaces with HyREX plants.
Primetals Technologies Ltd. and South Korea-based leading steel producer POSCO have signed a Memorandum of Understanding (MoU) agreement to develop a demonstration plant for hydrogen- based hot metal production in South Korea. The startup of the plant is expected to take place in early 2027.
Dr. Kisoo Kim, Head of Low Carbon Process R&D at POSCO, says, “For the development of eco-friendly hydrogen-based hot metal production, collaboration across all sectors such as raw materials, engineering, and hydrogen is essential. Thanks to the collaboration between POSCO and Primetals Technologies, we will make use of leading technological knowledge during development and implementation.”
The Korean steel company would manufacture Direct Reduced Iron (DRI) by using hydrogen as reducing gas – the HyREX technology. Then, the DRI will later be melted in an electric smelter. The HyREX solution is cost-competitive as it is directly using sinter fines and is avoiding any agglomeration steps – like sintering or pelletizing – in advance.
Since POSCO is committed to achieving carbon neutrality by 2050, the HyREX technology will play a great role in the same. The Company intends to keep on assessing the commercial feasibility of hydrogen-based hot metal production until 2030. The development and construction of the HyREX demonstration plant is an important part of this mission. Moreover, POSCO’s long-term aim is to gradually replace its current blast furnaces with HyREX plants.
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“We expect the HyREX technology to be a long-term and fundamental solution in many regions where it is difficult to use pellets. Let’s create a new success story together,” said Mr. Aashish Gupta, Executive Vice President, Primetals Technologies Ltd.
