POSCO has cleared a major milestone in its low-carbon steel journey after winning approval to prepare the site for a hydrogen-based steel plant in Pohang. The decision unlocks long-delayed development work, including land reclamation near its existing steelworks, and gives the company a longer runway to execute the project in phases through 2041.

The proposed investment is valued at about KRW 20 trillion, or roughly $13.3 billion, and sits at the heart of POSCO’s carbon-neutrality roadmap. The project will use the company’s HyREX technology, which produces direct reduced iron using hydrogen before melting it in an electric furnace, helping cut emissions far below traditional blast furnace routes.

The approval also strengthens POSCO’s position in the global race for green steel. A 300,000-tonne demonstration plant is already moving ahead in Pohang, with commissioning targeted for 2028, making this project one of the steel sector’s most closely watched decarbonisation efforts.