POSCO is proposing private investment in nuclear power, including large reactors and small modular reactors, to secure low-cost electricity for hydrogen-based steelmaking. The company estimates that converting its full domestic steel production to hydrogen reduction would require 24 GW of power, equivalent to about 17 nuclear reactors. Currently, POSCO generates 90% of its electricity from by-product gas, but that drops sharply with hydrogen-based processes, pushing its annual electricity bill from 500 billion won to an estimated 5 trillion won. The proposal includes refurbishing the suspended Wolseong Unit 1 reactor and long-term power purchase agreements. The main hurdle is regulatory: there is no mechanism for large power consumers to buy nuclear electricity at fixed prices for long periods. If the government opens that pathway, other power-intensive industries like semiconductors and petrochemicals could follow. POSCO has already met with Samsung Electronics to align on carbon-free energy procurement. The October 7 GX meeting will be a key test of whether this private nuclear investment model gains traction.
