POSCO Commissions South Korea's Largest Electric Arc Furnace for Low-Carbon Steel Production
chemanalyst.comPOSCO has completed South Korea's largest electric arc furnace (EAF) at its Gwangyang steel complex, with an annual capacity of 2.5 million tonnes. The facility uses recycled steel scrap instead of iron ore and coking coal, cutting carbon dioxide emissions by up to 75% compared to traditional blast furnaces. The project cost around USD 396.7 million and took over two years to build. The EAF serves as a bridge to POSCO's HyRex hydrogen-based steelmaking technology, expected around 2030. It also helps the company prepare for stricter climate policies like South Korea's Emissions Trading Scheme and the EU's Carbon Border Adjustment Mechanism. This shift may reduce demand for coal-derived chemicals like benzene and toluene over time, while supporting demand for hydrogen and industrial gases. For the carbon market, this is a concrete example of industrial decarbonization in action. The move from blast furnaces to EAFs and eventually hydrogen-based production shows how major steelmakers are adapting to regulatory pressure and market demand for greener materials.