POSCO has secured government approval to proceed with site preparation for its hydrogen-based direct reduced iron (DRI) steel plant in Pohang, marking a major breakthrough after years of regulatory delays related to land reclamation. The approval clears the way for development within the Pohang National Industrial Complex, including the reclamation of over 1.35 million square meters of public waters near the company’s existing steelworks. It also extends the overall development timeline of the industrial complex to 2041, providing the long-term framework needed for the project’s phased execution.
The hydrogen-based steelmaking initiative is valued at approximately KRW 20 trillion (around $13.3 billion) and forms a central pillar of POSCO’s strategy to achieve carbon neutrality by 2050. The project will be developed in stages and is expected to include multiple facilities based on the company’s proprietary HyREX technology, along with an electric furnace and integrated steelmaking operations.
HyREX is designed to use hydrogen to convert iron ore into direct reduced iron before melting, significantly reducing carbon emissions compared to traditional blast furnace methods. The technology represents one of the most promising pathways for decarbonizing steel production at scale.
With the regulatory approval in place, POSCO is expected to begin reclamation activities in the near term. The company is already advancing a 300,000-tonne demonstration plant at Pohang, with commissioning targeted for 2028. This pilot facility will play a critical role in validating the commercial viability of hydrogen-based steelmaking.
The project reflects growing momentum in global efforts to reduce industrial emissions, particularly in hard-to-abate sectors such as steel. However, large-scale adoption of hydrogen-based DRI depends on several factors, including access to low-cost hydrogen, reliable infrastructure, and sustained capital investment.
A company official stated that POSCO will continue to work closely with government authorities and local communities to ensure smooth project execution. This development positions POSCO at the forefront of next-generation steelmaking, reinforcing its commitment to sustainable innovation and long-term transformation of the industry.
