South Korean giants LG Chem and POSCO Holdings have entered into a strategic partnership to decarbonize the steel industry through a large-scale carbon capture and utilization (CCU) project, the companies announced this week.
The initiative, supported by the Korea Research Institute of Chemical Technology and South Korea’s Ministry of Science, will focus on reducing coal dependency in steel production by using LG Chem’s proprietary CCU technology.
Under the agreement, carbon dioxide captured from POSCO’s Pohang steel plant will be converted into carbon monoxide and hydrogen, which can be used as reducing agents in the steelmaking process—a role traditionally filled by coal. This innovation is expected to significantly cut greenhouse gas emissions.
Construction of the demonstration facility will begin in 2028 at the Pohang plant, with pilot operations running through 2030.
Both companies stated that the project aims to secure critical raw materials and reduce carbon emissions cost-effectively, aligning with South Korea’s carbon neutrality targets.
This partnership underscores growing momentum in Asia’s industrial decarbonization efforts and positions LG Chem and POSCO as leaders in green steel innovation.
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