LG Chem Ltd. (Seoul, South Korea) is entering into a full-scale partnership with POSCO Holdings (Pohang, South Korea). The companies will carry out a demonstration project for CCU (Carbon Capture and Utilization) technology, jointly involving the chemical and steel industries, as part of the Ministry of Science and ICT’s national CCU Mega Project.
Under the project, carbon dioxide captured at POSCO’s Pohang steelworks will be converted into carbon monoxide (CO) and hydrogen, which are used as reducing agents in steelmaking, via LG Chem’s proprietary DRM (Dry Reforming of Methane) technology. Reducing agents are substances used to extract pure metal from metal oxides, such as iron ore, by removing oxygen.
In the steelmaking process, coal is used as a reducing agent to extract iron from iron ore. The heat generated from coal combustion is used to power a melting furnace, and the resulting carbon monoxide (CO) acts as a reducing agent, producing carbon dioxide in the process. LG Chem’s DRM (Dry Reforming of Methane) technology, a form of CCU (Carbon Capture and Utilization), uses carbon dioxide and methane (CH₄) as feedstock to produce carbon monoxide (CO), a reducing agent, and hydrogen. These outputs can be used in steelmaking processes to reduce the reliance on coal. Carbon monoxide can also serve as a raw material for various chemical products such as plastics, while hydrogen can be used as an eco-friendly fuel. If commercialized through this demonstration project, the technology is expected to expand its range of applications significantly.
As leading players in the chemical and steel industries, LG Chem and POSCO Holdings aim to drastically reduce carbon emissions and secure key raw materials and fuels in a cost-efficient manner. This initiative is expected to serve as a game-changer in achieving South Korea’s carbon neutrality goals.