Hyundai Motor Group Chairman Chung Eui-sun. (Photos: Hyundai Motor Group)

Hyundai Motor Group and POSCO are joining forces to develop a new steel-making technology that emits no greenhouse gasses in the course of steel-making.

The conventional coke-based blast furnace is facing a chronic problem of emitting large amounts of greenhouse gases, including CO2. Using hydrogen instead of coal is a plausible solution to fix the problem.

Business sources said Hyundai Motor Group signed an MOU of the hydrogen business with POSCO to develop hydrogen direct reduction technology.

If the development of the new hydrogen direct reduction steel-making technology is commercialized, it is expected to serve as a breakthrough in the steel-making industry paradigm.

The hydrogen business agreement, struck by Hyundai Motor Group and POSCO on Feb. 16, includes cooperation in the development of a new steel-making technology.

The deal calls for Hyundai Steel, the steel-making unit of Hyundai Motor Group, and POSCO to join forces in the development of a hydrogen direct reduction technology.

A view of Hyundai Motor EV car IONIQ 5.

At that time, Hyundai Motor Chairman Chung Eui-sun met with POSCO Chairman Choi Jeong-woo at Chongsongdae, POSCO’s guest house, and forged a “hydrogen alliance,” calling for introducing hydrogen fuel cell cars at POSCO’s steelworks and building hydrogen charging stations.

The two companies will cooperate on the development of hydrogen fuel cell EVs and eco-friendly technologies in the steel-making sector. They aim to achieve carbon zero in the steel-making process by 2050 to spearhead the eco-friendly initiative.

POSCO has produced part of crude steel using FINEX-based commercial production facilities. FINEX is an innovative, paradigm-shifting technology where molten iron is produced directly in a blast furnace.

The process eliminates preliminary processing and uses cheaper powder-type iron ore and bituminous coal as raw materials.

Subsequently, investment and production costs can be reduced by 85 percent compared to those of general blast furnaces of the same size.

In addition, the technology reduces SOx and NOx emissions by 40 and 15 percent respectively, and fine dust particles can be reduced by 34 percent compared to general blast furnaces.

The FINEX-based technology can reduce greenhouse gas emissions, but can eliminate them, however.

Hyundai Motor Group and POSCO are seeking to develop a more advanced hydrogen direct reduction steel-making technology using hydrogen instead of coal.

The conventional coke-based blast furnace emits 2 tons of CO2 in the course of producing 1 ton of crude steel. The hydrogen direct reduction technology discharges no CO2.

The two companies plan to utilize green hydrogen using ammonia in the course of developing the new steel-making technology.

Liquefied ammonia, combining hydrogen and nitrogen, costs less compared to the general liquid hydrogen since the former can be stored up and transported with ease. Liquefied ammonia is called “green hydrogen.”

A view of Hyundai Starria, a follow-up model of Hyundai Starex.