POSCO launches South Korea's largest electric arc furnace, cuts steel carbon emissions by 75%
chosun.comPOSCO has started full production at a new 2.5 million ton per year electric arc furnace at its Gwangyang steelworks. The EAF uses scrap iron and electricity instead of coal, cutting carbon emissions by up to 75% compared to a traditional blast furnace. The company invested 6 billion KRW over two years and aims to produce high-grade automotive steel sheets using this process by 2030. The steel industry accounts for roughly 14% of South Korea's total carbon emissions. The move comes as the EU's Carbon Border Adjustment Mechanism takes effect this year and South Korea targets a 53-61% emissions cut by 2035. Other major steelmakers like Hyundai Steel and Japan's Nippon Steel are also expanding EAF capacity. A key challenge is electricity cost. POSCO estimates the Gwangyang EAF will increase total electricity consumption at the site by 10%. South Korea's industrial electricity rate has risen 76% since late 2021. Industry sources say without support like lower electricity rates for low-carbon investments, price competitiveness could suffer.