Leading the Low-Carbon Revolution: POSCO's HyREX Hydrogen Reduction Plant to Start Construction in 2026 and Commercialize in 2030

Report (Reporter: Industry Observer) On February 5, South Korea's POSCO officially announced that it will start the construction of its HyREX hydrogen reduction ironmaking demonstration plant in 2026, with a clear plan to enter trial operation in 2027 and achieve commercial operation in 2030. It strives to complete the full-process hydrogen reduction transformation of its two core steel plants in Pohang and Gwangyang by 2050, fully achieving its carbon neutrality strategic goals.

It is understood that the HyREX process uses hydrogen as the core reducing agent instead of coke required for traditional blast furnace ironmaking, which can reduce carbon emissions by about 90% compared with traditional processes. It is one of the most scalable low-carbon technology paths in the global steel industry currently. The demonstration plant will focus on the production of hydrogen-based direct reduced iron, and simultaneously support related facilities such as hydrogen storage and transportation, and carbon footprint accounting, to build a full-chain low-carbon steel production system.

A relevant person in charge of POSCO stated that the launch of the demonstration plant construction this time is not only a key measure for the enterprise to fulfill its carbon neutrality commitment, but also an important layout to seize the commanding height of global low-carbon steel technology. After the project is put into use, it will produce high-purity, low-impurity high-end plates and special steel products, which can directly meet international green compliance requirements such as the EU CBAM and U.S. carbon tariffs, further strengthening the enterprise's pricing power in the global high-end steel market.

Consolidating the Supply Foundation: U.S. Steel Restarts Coke Ovens at Mon Valley Works to Achieve Self-Sufficiency in Coke

Report (Reporter: Industry Observer) On February 6, U.S. Steel issued an announcement stating that the No. 13 coke oven battery at its Mon Valley Works has been successfully restarted. This is the second coke oven battery restored and put into use after the plant was suspended due to equipment failure. After the full recovery of the coke oven batteries, U.S. Steel will completely achieve internal self-sufficiency in coke, get rid of dependence on external commercial coke, and consolidate the safety line of the supply chain.

It is reported that the coke oven batteries at the Mon Valley Works were previously suspended due to equipment failure. After a period of comprehensive maintenance and upgrading, the restarted No. 13 coke oven battery has optimized safety processes such as valve cleaning and pressure control, which not only improves production safety, but also further increases coke production capacity and quality, which can fully match the coke demand for blast furnace production at the plant.

A relevant person in charge of U.S. Steel pointed out that as a core raw material for ironmaking, fluctuations in external supply and price shocks have always been key factors affecting the stability of enterprise production. In 2025, the global coke price fluctuation range reached 25%, bringing great pressure on enterprise cost control. After the full restart of the coke ovens to achieve self-sufficiency in coke, it is expected that the cost per ton of steel can be reduced by 8-12 US dollars, while ensuring the continuous and stable production of blast furnaces, effectively improving the enterprise's capacity utilization rate and order delivery capacity.

Data show that North American steel demand is expected to grow by 2% in 2026, and demand in terminal fields such as construction, automobiles, and oil and gas pipelines is steadily picking up. The improvement of U.S. Steel's coke self-sufficiency capacity will further stabilize the North American steel supply market, and also provide new cooperation opportunities for global steel foreign trade enterprises. Especially in fields such as coke oven supporting spare parts and high-end steel supporting processing, it is expected to spawn more cooperation space and help the coordinated development of the regional steel supply chain.