The government is beginning to support securing hydrogen reduction steelmaking demonstration technology that can simultaneously achieve carbon neutrality in the steel industry and strengthen the competitiveness of leading industries.
The Ministry of Trade, Industry and Energy announced on the 26th during the National Research and Development Project Evaluation Committee that the 'Korean-style hydrogen reduction steelmaking demonstration technology development project' passed the preliminary feasibility study. The total project cost is 814.6 billion won, with 308.8 billion won coming from the national budget.
Hydrogen reduction steelmaking is a technology that emits steam instead of carbon by replacing coal used to remove oxygen contained in iron ore during the iron production process with hydrogen. It has garnered attention as a dream technology that can reduce carbon emissions by over 95% compared to existing blast furnace processes, and major countries overseas are strengthening financial support to achieve carbon neutrality goals and secure hydrogen reduction steelmaking technology.
Amid fierce competition among countries to secure hydrogen reduction steelmaking technology, our government has prepared by supporting basic technology development projects and designating national strategic technologies. Demonstration projects based on the domestic unique technology 'FINEX' that directly inputs iron ore and coking coal into the process have been collaboratively planned by industry, academia, and research institutions.
Based on the results of this preliminary feasibility study, the government plans to support a project to demonstrate a process capable of producing 300,000 tons of hydrogen-reduced iron and molten iron using powdered iron ore and hydrogen by 2030, as well as a project utilizing hydrogen-reduced iron in existing electric furnaces held by small and medium-sized enterprises. The government intends to convert the blast furnace to a hydrogen reduction steelmaking process based on the technology secured.
Na Seong-hwa, director of industrial supply chain policy at the Ministry of Trade, Industry and Energy, noted, "This demonstration project is expected to not only achieve carbon neutrality by 2050 but also serve as an opportunity for the domestic steel industry to lead the global market," and added, "In order to ensure a smooth transition to the hydrogen reduction steelmaking process in the future, we will prepare policy support measures to stably supply hydrogen and electricity as well as research and development budget support."