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Posco launches control tower for carbon neutrality goals

Posco-Hancock to review business feasibility on carbon steel material manufacturing

Posco Vice Chairman Kim Hag-dong chairs the meeting of Posco’s committee for carbon neutrality on Mar. 16. (Posco)
Posco Vice Chairman Kim Hag-dong chairs the meeting of Posco’s committee for carbon neutrality on Mar. 16. (Posco)

Posco said Tuesday it has launched a new committee to act as a control tower that supervises carbon neutrality efforts across affiliates and makes timely decisions under its goal of going carbon neutral by 2050.

“Posco requires a prompt decision-making process to proactively respond to global needs for carbon neutrality efforts, as well as to accelerate our production system based on carbon neutrality goals by 2050,” said Posco Vice Chairman Kim Hag-dong, who leads the new committee. 

“This committee will make decisions on crucial issues such as discussions for carbon neutrality strategies and related investment in timely manner.”

In 2020, Posco released a plan to reduce CO2 emissions by 20 percent in the short-term by 2030 and 50 percent in the mid-term by 2040 with a target to attain net zero emissions by 2050. 

According to Posco, it has also launched a separate advisory panel comprised of market experts and energy and climate scholars to add expertise and objectivity to Posco’s carbon neutrality execution plans. Eight participating experts include professor Min Dong-jun from Yonsei University and professor Park Ju-hyun from Hanyang University, it added. The committee held its first meeting on Tuesday to share market trends and insights. 

Meanwhile, Posco said Tuesday that it has signed a deal with Australian mining and agricultural business operator Hancock to review business feasibility for its project on low-carbon steel material manufacturing. 

From left: Hancock CEO Garry Korte, Posco’s Purchasing Investment Division Head Lee Ju-tae and Hancock Executive Director Tad Watroba pose for a photo after signing a deal to review business feasibility for project on low-carbon steel material manufacturing on Tuesday in Perth, Australia. (Posco)
From left: Hancock CEO Garry Korte, Posco’s Purchasing Investment Division Head Lee Ju-tae and Hancock Executive Director Tad Watroba pose for a photo after signing a deal to review business feasibility for project on low-carbon steel material manufacturing on Tuesday in Perth, Australia. (Posco)

On Tuesday, the two firms agreed to evaluate investment, project feasibility and risks in terms of establishing a plant to manufacturing Hot Briquetted Iron (HBI), development of iron ore mine, investment for hydrogen production infrastructure. HBI is used as a supplement in electric arc furnaces, allowing for production of the most demanding steel grades. It also boosts productivity and reduces coke consumption during steel making. 

Posco said the investment will be decided by the year-end to co-develop Australian mines owned by Hancock to reliably secure high-quality iron ore, as well as other materials for new renewable energy. 

The two groups have been continuing collaboration since 2010. Posco and Hancock have run the Hill iron ore mine together for more than a decade. Most recently, Posco International and Hancock Energy also jointly acquired Australian natural gas producer Senex Energy last December. Posco said its partnership with Hancock will focus towards developing low-carbon materials, energy and battery materials such as lithium in the future.

By Kim Da-sol (ddd@heraldcorp.com)
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