The construction of South Korean steelmaker POSCO's hydrogen-based steel plant in Pohang has received final approval from South Korea's Ministry of Land, Infrastructure and Transport, local media reported.
The ministry announced that it has approved amendments to the Pohang National Industrial Complex plan to allow the construction of a dedicated 1.34-million-square-foot site through coastal reclamation near existing steel mills. POSCO.
The approved project will transform previously undesignated public waters into an exclusive industrial zone and is expected to develop into a complex combining steel and energy infrastructure. The development period for the industrial complex has also been extended from 2030 to 2041, reflecting long-term transformation plans.
According to POSCO, the site will host a hydrogen-based steel production project, including a HyREX pilot plant, which will produce molten pig iron by reducing fine iron ore with hydrogen and smelting it in an electric furnace. The company plans to operate a pilot plant with an annual capacity of 300,000 tons by 2028.
The approval follows a lengthy administrative process from 2023, including an environmental impact assessment and consultation with several ministries. The reclamation plan has faced opposition from local residents and environmental groups due to concerns about marine ecosystems, although POSCO has indicated that only stabilized materials will be used and that the environmental impact is expected to be limited.
The project is seen as a key step in South Korea's strategy to commercialize hydrogen-based steel production by around 2030, although challenges remain over hydrogen supplies, low-carbon energy infrastructure and environmental management.
