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Carbon Neutrality: Pathway to Green Steel

Hyundai Steel strives to become a steelmaker capable of sustainable growth by committing to carbon neutrality

Hyundai Steel’s Roadmap to Carbon Neutrality

In April 2023, Hyundai Steel announced its plan to achieve carbon neutrality, demonstrating its commitment to actively addressing risks related to climate change. The company plans to reduce carbon emissions by 12% by 2030, in line with South Korea’s Nationally Determined Contribution (NDC) target, and achieve carbon neutrality by 2050. 

Carbon Emission Reduction Targets ( ~ 2050)

(Unit: million tons CO2/year)
  • 4,000
  • 3,000
  • 2,000
  • 1,000
  • 0
3,026
2018
2,663(하락12%)
2030 Reduceemissions
by 12% by 2030
Net-Zero
2050 Achieve carbon
neutrality by 2050

Hyundai Steel’s Carbon Neutrality Strategy

Hyundai Steel will reduce carbon emissions through two key strategies: lowering the carbon footprint of products and minimizing emissions in the production process. We aim to support our customers’ journey towards carbon neutrality by providing them carbon emission reduction products. Simultaneously, we plan to work towards our own emission reduction goals by actively exploring ways to lower the environmental impact of our production process.

Hyundai Steel has developed the “Electric Arc Furnace – Blast Furnace Combined Process”, which can produce products with a lower carbon footprint while maintaining quality. In the long term, we aim to significantly reduce the carbon footprint of our products through hydrogen-based iron-making and large-scale application of electric arc furnaces.

Short- to Long-term Transition Plans

Pre-melting method
In Phase 1, the byproduct of melting scrap iron and HBI in the pre-melting electric arc furnace is combined with molten iron from the blast furnace in the basic oxygen furnace. This process produces steel products with a carbon emission reduction of approximately 20% compared to conventional blast furnace products. *100% coverage of existing automotive steel sheets
Hy-Arc method
In Phase 2, molten iron from the blast furnace will go directly into the Hy-Arc, our large-scale, high speed electric arc furnace. This process produces steel products with a carbon emission reduction of approximately 40% compared to conventional blast furnace products. *70% coverage of existing automotive steel sheets *70% coverage of existing automotive steel sheets
Hydrogen-based Steelmaking (~2050)
In the long-term, Hyundai Steel plans to transition from traditional coal-based steelmaking to hydrogen-based steelmaking. 

Process Emission Reduction

Hyundai Steel is committed to steadily lowing carbon emissions in its manufacturing process through various methods such as applying carbon reduction technologies in ironmaking and enhancing energy efficiency.

  • Emission Reduction in the Ironmaking Process
    We have adopted strategies such as increasing low-emission fuels and raw materials, introducing CDQ facilities, and optimizing operations to reduce the carbon emissions in the ironmaking process.
  • Improvement in Energy Efficiency
    We strive to optimize our manufacturing process to reduce carbon emissions by increasing self-generated power and enhancing energy efficiency.

HyECOsteel, Hyundai Steel’s lower-emission product brand

Hyundai Steel’s unique lower-emission product brand “HyECOsteel” supports customers in their mission towards carbon neutrality. The HyECOsteel brand encapsulates all of our carbon emission reduction products, and these products can meet the needs of customers in various sectors ranging from automotive, construction, shipbuilding, and whitegoods.

HyECOsteel will initially be produced through the “Electric Arc Furnace – Blast Furnace Combined Process”. This process reduces the carbon footprint of our products while maintaining the same quality as conventional blast furnace products. Our two-phase approach enables us to meet varying customer needs by offering products with different carbon footprint levels depending on product grade.

HyECOsteel

Electric Arc Furnace

Blast Furnace Combined Process Phase 1 (Pre-melting) Test Results
  • Coverage: 100% of automotive steel sheets
  • Reduction in Carbon Footprint: 20%*
  • Pictured: Outer Panel
    *compared to conventional blast furnace products

Electric Arc Furnace

Blast Furnace Combined Process Phase 2 (Hy-Arc) Test Results
  • Coverage: 70% of automotive steel sheets (excludes outer panel)
  • Reduction in Carbon Footprint: 40%*
  • Pictured: World’s first 1.0GPa electric arc furnace product
    *compared to conventional blast furnace products

Electric Arc Furnace

Blast Furnace Combined Process Phase 1 (Pre-melting) Test Results
  • Reduction in Carbon Footprint: 20%*
  • Pictured: 355MPa grade plates for offshore wind power
    *compared to conventional blast furnace products

Hyundai Steel’s key carbon neutral technologies

Hyundai Steel’s transition to a carbon neutral system is based on its proprietary carbon neutral technology framework, “Hy-Cube”. The core of the Hy-Cube technology framework is Hy-Arc and hydrogen technology, which, along with CCUS technology that captures inevitably generated carbon, are important technologies for carbon neutrality.

Hy-Cube (Hy3 : Hyundai-Hydrogen-Hybrid)

Hyundai Steel’s long-term goal of achieving carbon neutrality is based in its innovative production system, “Hy-Cube”. Hy-Cube is a technological framework that is centered around the Hy-Arc and hydrogen, and it ensures flexibility across the three core elements of steelmaking: raw materials, processes, and products.

Core facilities of Hy-Cube: Hy-Arc
Central to Hy-Cube is Hyundai Steel’s proprietary large-scale electric arc furnace, the Hy-Arc, which combines the functions of a blast furnace and a converter. Hy-Arc is the key facility in Hyundai Steel’s carbon-neutral production system, enabling both flexibility and sustainability in steelmaking.
Key functions of Hy-Arc
Performs multiple functions ranging from melting scrap to removing impurities
Able to input various raw materials such as molten steel, hydrogen-based DRI, allowing for flexibility

Hydrogen technology

Upon transitioning to carbon-neutral steelmaking process, it is necessary to transform the conventional coal-based steelmaking to hydrogen-based steelmaking. When transitioned to carbon-neutral steelmaking, hydrogen would be used as a reducing agent, as a fuel for thermal facilities such as preheaters and heating furnaces, and as a source for clean electricity generation. Therefore, producing green hydrogen for the steelmaking is a crucial foundation for achieving carbon neutrality.

Hydrogen technology process
Clean hydrogen production technology
  • Renewable energy
    Electricity is generated using green energy sources such as wind and solar power
  • Water electrolysis
    Water electrolysis is a process that uses electricity to separate water into hydrogen and oxygen molecules without emitting any carbon.
  • Green hydrogen
    Green hydrogen is hydrogen produced using renewable energy sources through the water electrolysis process.
Hydrogen utilization conversion technology
  • Reduction furnace
    Using gaseous reducing agents such as hydrogen, oxides from iron ore is reduced to produce direct reduction iron (DRI). (FeO2 + 3H2 → 2Fe + 3H2O)
  • DRI
    Using gaseous reducing agents such as hydrogen, oxides from iron ore is reduced to produce direct reduction iron (DRI). (FeO2 + 3H2 → 2Fe + 3H2O)
  • Electric arc furnace
    Scrap and DRI are melt with electric arc furnace, then impurities are removed to produce liquid steel. Renewable energy source based green electricity is supplied to reduce carbon emissions.

CCUS technology

In the process of transitioning to carbon-neutral steelmaking processes, some residual carbon emissions may inevitably occur despite various efforts, including hydrogen-based steelmaking. Hyundai Steel plans to manage these residual emissions through CCUS (Carbon Capture, Utilization, and Storage) technology to achieve carbon neutrality.

What is CCUS technology?
  • CO2 capture
    Capturing carbon dioxide generated from industrial processes and energy production.
  • CO2 aggregation and transportation
    Transporting captured CO2 to hubs for storage and utilization.
  • CO2 storage
    Safely storing remaining CO2 underground to prevent its release into the atmosphere.
  • CO2 utilization
    Recycling captured CO2 as industrial materials or energy resources.
Necessity of CCUS technology

CCUS technology plays a crucial role in reducing carbon emissions and mitigating global warming by being utilized in various fields such as industrial processes, energy production, and air pollution reduction.

CO2 capture technology

CO2 capture technology is a method for effectively separating and managing carbon dioxide from the atmosphere, with the captured CO2 subsequently transported for utilization or underground storage.

Hyundai Steel’s membrane CO2 capture testing facility
Liquid solvent CO2 capture process
CO2 from flue gas is absorbed in liquid-based solvents (e.g., MEA, MDEA). The CO2-rich solvent is then sent to a stripping column, where CO2 is separated and sent for storage or sequestration.
Dry sorbent CO2 capture process
CO2 from flue gas is selectively captured by solid sorbents (e.g., zeolites, alkali metal oxides). The CO2 loaded sorbent is then sent to a regeneration unit, where high-purity CO2 is separated and collected for storage or sequestration.
Membrane CO2 capture process
Separation of flue gas by selectively allowing CO2 to pass through a porous sheetlike structure with different relative permeation rates. Gases which permeate faster are collected outside of the membrane as permeates, while gases do not permeate so well and stay in side of the membrane are separated out as retentates.