According to SteelOrbis, citing local media, the South Korean Ministry of Land, Infrastructure and Transport has finalized amendments to the Pohang National Industrial Complex plan to accommodate POSCO’s project. This decision paves the way for a dedicated industrial zone near the company’s existing steelmaking site, specifically for hydrogen-based steel production. For the global market, this signals that major producers are moving from pilot concepts to the practical deployment of low-carbon technologies.
What the Approved Project in Pohang Entails
The approval covers the formation of a separate 1.34 million square meter plot created through coastal land reclamation. This area, which previously lacked industrial status, is being transformed into a specialized industrial zone with the potential to integrate metallurgical and energy infrastructure. Simultaneously, the development horizon for the complex has been extended from 2030 to 2041, highlighting the project’s scale and long-term nature.
According to POSCO, this location will house the HyREX pilot facility. The technology involves the reduction of fine iron ore using hydrogen, followed by melting the resulting product in an electric furnace. The company expects to commission the pilot plant by 2028 with an annual capacity of 300,000 tons, marking a vital step toward the commercialization of hydrogen steelmaking.
Market Impact and Solutions from winox.ua
For the metal market, this project is more than just technological news; it is a marker of changing requirements across the entire supply chain. The development of hydrogen and electric metallurgical routes increases the importance of raw material quality, equipment energy efficiency, and the stability of metal product supplies for industrial consumers. In this environment, winox.ua, as a supplier of rolled metal, stainless steel, and non-ferrous metals, focuses on certified products from trusted manufacturers that meet modern industrial requirements.
For industrial enterprises, interest in such projects is important from a practical standpoint. The low-carbon transformation of global metallurgy will gradually influence procurement standards, technical specifications, and supplier selection criteria. This is why the reliability of metal origin, quality control, and logistics predictability are becoming critical parameters—factors that winox.ua prioritizes when forming offers for B2B clients.
Key Challenges for Hydrogen Steelmaking
Despite administrative approval, the project remains technically and environmentally complex. Key challenges include access to industrial-scale hydrogen, securing low-carbon electricity, and managing large-scale infrastructure restructuring. An additional risk factor is public sensitivity regarding the environmental impact of land reclamation and its effect on marine ecosystems.
The administrative process has been ongoing since 2023, involving environmental assessments and inter-agency consultations. While the project has faced opposition from local residents and environmental groups, POSCO states it uses stabilized materials and ensures limited environmental impact. Concurrently, the company prepares to launch a new electric arc furnace with a capacity of 2.5 million tons per year at the Gwangyang plant in June 2026, confirming its systemic course toward production modernization.