(HSV VIETNAM GROUP) – Last month, POSCO Group, South Korea's leading steel manufacturer, announced a new vision of becoming a "green energy and global pioneer", with the goal of doubling "environmentally friendly" steel sales by the end of 2023.
POSCO's statement was made in the context of global steel manufacturers seeking to reposition their "foothold" in a race to lead the world in green steel production. The competition stems from the fact that the steel industry's largest customers, including container shipping group Maersk, Mercedes-Benz Group, BMW, Volvo Cars and Apple... have in recent years publicly affirmed that green steel will be an important part of their future production plans.
Last year, Maersk announced that, by 2050, it would aim to ensure “zero emissions” steel is used in the ships, buildings and equipment it buys. Similarly, Volvo and Apple have both signaled their intention to achieve carbon neutrality across most key channels of their supply chains by 2030.
Experts say POSCO's new vision is a welcome change. This move builds on a number of important steps taken by POSCO last year, including an investment of 52,000 billion won (38.9 billion USD) in green steel and green hydrogen production in Australia (Australia), as well as a plan to operate a HyREX factory with new technology, producing steel based on hydrogen energy, located in Pohang province of Korea.
The factory is being developed by construction company Primetals Technologies. POSCO hopes that, once put into operation, HyREX will be a source of proof for the commercial feasibility of steel production based on green hydrogen energy by 2030 and allow the group to gradually replace factories using current blast furnace steel production technology by 2049.
However, some opinions believe that the 2049 timeline is too late for green transformation activities and that POSCO's carbon neutral roadmap is still incomplete. The group has only announced its intention to eliminate blast furnace technology steel factories in Pohang province by 2049, but has not mentioned the gradual elimination of furnaces currently operating in South Korea's Gwangyang province.
Independent consulting organization specializing in green energy transition in Asia Next Group estimates that POSCO's emissions intensity will decrease by only 12.4% by 2030, much lower than the International Energy Agency's (IEA) recommendation of 29% by 2030. Next commented that POSCO does not present specific plans showing that the group can meet its emissions targets in 2040 and 2050. without the need to implement additional mitigation measures over the next decade.
Although POSCO has maintained its position as one of the world's leading steel manufacturers for many years, 2022 is a challenging year when the group recorded a 47% decrease in profits. According to experts, POSCO's future investment decisions will become difficult, in the context of an increasing number of new steel startups such as H2 Steel and Boston Metal promising to create "zero emission" steel products by 2025./.
Ha Diem (Summary)