LG Chem is accelerating its efforts toward carbon neutrality by entering into a full-scale partnership with POSCO Holdings.

LG Chem announced that it 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.

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.

In 2023, LG Chem built a 1,000-ton DRM pilot plant at its Daesan site in South Chungcheong Province, where it is currently validating its proprietary process and catalyst technology. The CCU demonstration project will begin with the design phase in 2026, followed by facility construction at the Pohang steelworks in 2028, and demonstration operations through 2030.

Ki Soo Kim, Head of Future Technology Research Center and CTO of POSCO Holdings, stated, “The CCU Mega Project consortium led by POSCO Holdings and joined by LG Chem will mark a major milestone in achieving carbon reduction goals. We will focus our capabilities on developing technologies that reduce carbon generated during production and convert it into high-value materials, while maximizing synergy between the two companies.”

Jongku Lee, Executive Vice President and CTO of LG Chem, stated, “This collaboration between LG Chem and POSCO Holdings goes beyond a simple partnership. It marks a turning point where the steel and chemical industries come together to lead the era of carbon neutrality. LG Chem will not remain confined to existing industrial structures but will continue to take bold steps forward to lead the way in carbon-reducing and sustainable innovations across global industries.”

Meanwhile, the CCU demonstration project connecting the chemical and steel industries will be led by POSCO Holdings. Five institutions、including POSCO, the Gyeongbuk Research Institute, the Gyeongbuk Carbon Neutrality Support Center, the Korea Research Institute of Chemical Technology, and Hongik University, will participate in CO₂ capture, CCU infrastructure development, and reduction assessment. The CO₂ conversion technology demonstration will involve four additional institutions: RIST (Research Institute of Industrial Science & Technology), POSTECH, Seoul National University, and Hanyang University.