In a significant stride towards achieving carbon neutrality, South Korean industrial giants LG Chem and POSCO Holdings have announced a powerful collaboration to undertake a large-scale Carbon Capture and Utilization (CCU) technology demonstration project. This ambitious initiative, a key component of the Ministry of Science and ICT’s national CCU Mega Project, marks a unique convergence of the chemical and steel industries to tackle carbon emissions head-on.

The core of the project lies in capturing carbon dioxide (CO2) emitted from POSCO’s steel manufacturing operations at its Pohang steelworks. This captured CO2 will then be processed using LG Chem’s proprietary Dry Reforming of Methane (DRM) technology. The DRM process efficiently converts CO2 and methane (CH4) into carbon monoxide (CO) and hydrogen (H2). These resulting gases hold significant potential for the steelmaking process.

Currently, the steel industry relies on coal as a crucial reducing agent to extract pure iron from iron ore. During this process, the combustion of coal not only generates the necessary heat for the melting furnace but also produces carbon monoxide, which acts as the reducing agent, ultimately leading to further CO2 emissions. LG Chem’s innovative DRM technology offers a pathway to reduce this reliance on coal. The carbon monoxide produced through DRM can be directly utilized as a reducing agent in steelmaking, thereby lowering the carbon footprint of the process. Furthermore, the co-produced hydrogen can also serve as a clean fuel source.

Beyond its application in steel production, the carbon monoxide generated through LG Chem’s DRM technology holds promise as a valuable raw material for the chemical industry, potentially serving as a building block for various chemical products, including plastics. The generated hydrogen also presents opportunities as an environmentally friendly fuel alternative across different sectors. The successful commercialization of this CCU technology through this demonstration project is anticipated to unlock a wide array of applications and significantly contribute to a circular carbon economy.

Leading this transformative project is POSCO Holdings, with LG Chem as a key partner bringing its cutting-edge DRM technology to the forefront.

The project is structured with a clear timeline. The design phase is slated to commence in 2026, followed by the construction of the demonstration facility at POSCO’s Pohang steelworks in 2028. Demonstration operations are then scheduled to run through 2030, allowing for thorough evaluation and optimization of the integrated CCU technology.