South Korean steelmaker POSCO would need to consider moving some of its most energy-intensive manufacturing out of the region if it’s unable to switch to greener processes, a company executive has said.
A switch to zero-emissions steelmaking will need about 3.7Mt/yr of green hydrogen by 2050, according to Kim Hee, a senior vice president responsible for POSCO’s efforts to achieve carbon neutrality. The complexity of securing the amount of renewables required is a factor that could drive the producer to look overseas at nations including Australia, she said.
“Having our upstream processing in another region will be considered as our last resort as the decision poses several risks.''
Kim Hee, senior vice president, POSCO
“Having our upstream processing in another region will be considered as our last resort as the decision poses several risks,’’ Kim said. “Still, the fact that we may put this idea on the table shows how desperate we are in delivering our climate commitment.”
POSCO has operations and subsidiaries in 16 other nations, although it produces the majority of its steel in South Korea. The company is aiming to reduce emissions by 30% by 2035 and hit net zero by 2050.
POSCO has operations and subsidiaries in 16 other nations, although it produces the majority of its steel in South Korea. The company is aiming to reduce emissions by 30% by 2035 and hit net zero by 2050.
The costs of a clean transition will also likely rise further, as a result of rising energy prices, Ms Kim said in an interview earlier this month.
Without the support from the government and our community, POSCO’s climate mission will be impossible to achieve.”
Kim Hee, senior vice president, POSCO
Governmental aid, including subsidies and tax breaks would make the transition to decarbonized production easier, Kim added.
Source: Bloomberg
