South Korean steelmaker POSCO has revealed details of an undersea tunnel project designed to link the Gwangyang Steelworks with the Yeosu Industrial Complex with the sole purpose of exchanging by-product gas.

A memorandum of understanding (MOU) has been signed by POSCO along with four petrochemical companies based within the Yeosu Industrial Complex and including Air Liquide Korea.

The ultimate aim of the project is to exchange by-product gases produced at Gwangyang and Yeosu.

“By-product gases like carbon monoxide and hydrogen monoxide are produced at Gwangyang Steelworks, while nitric acid and caustic soda are produced as by-products at the Yeosu Industrial Complex. Currently, by-product gases can be used as materials for petrochemical companies, but transportation is difficult and, therefore, mostly consumed within Gwangyang Steelworks while companies within the Yeosu Industrial Complex use expensive petroleum-based materials,” claims POSCO.

The planned undersea tunnel will enable by-product gases to be supplied from one company to the other and reduce production costs in the process.