The EAF is scheduled to come into operation in 2026
South Korean steelmaker POSCO has started construction of a 2.5 million tonne per year electric arc furnace (EAF) at its Gwangyang plant, Kallanish reports.
The EAF is expected to be completed by the end of 2025 and officially operational in 2026.
The total investment in the project is estimated at 600 billion KRW (more than 451 billion USD). When the planned production volume is reached, the company will be able to reduce carbon emissions by around 3.5 million tons per year compared to blast furnace production. Furthermore, the company intends to use the gases generated during the operation of the electric arc furnace to preheat scrap.
POSCO ordered a Consteel continuous scrap feeding system and a Consterrer electromagnetic stirring system from Tenova in Italy.
POSCO plans to complete the commercialization of its HyREX technology by 2030 and shift its Pohang and Gwangyang steel mills to steel production based entirely on hydrogen reduction technology by 2050. The company is also intensifying its efforts to establish ecological commercial production abroad. The group plans to double its steel production capacity abroad by 2030 (from 5 million tons in 2022).
As Compraço previously reported, POSCO expressed interest in negotiating potential cooperation with Montenegro's state energy company, Elektroprivreda Crne Gore (EPCG). This is the steel branch of Zeljezara Niksic.
