Energy

    Energy Strategy

    POSCO has defined a clear energy management strategy to support the transition toward a decarbonized business model and is advancing it through a range of initiatives.
    ISO 50001: Energy Management System Certification
    In September 2012, POSCO obtained ISO 50001 certification to systematically manage energy use and has maintained the certification through annual reassessments. Each year, we conduct internal audits to evaluate and improve the implementation and standards of our company-wide energy management system. In addition, our energy experts receive ongoing training, including participation in external programs such as the ISO 50001 Internal Auditor Training Course, which was completed by 44 employees in 2024.
    Environment-Friendly Motor Vehicle

    Since 2022, POSCO has been replacing company-owned and leased vehicles with environment-friendly motor vehicles1).  As of 2024, a total of  185 vehicles—representing 24.5% of the fleet—have been converted. We are also participating in the Korea Zero Emission Vehicle Conversion (K-EV100) project of the Ministry of Environment (MOE). 

    1)The term 'environment-friendly motor vehicle' means an electric vehicle, solar-powered vehicle, hybrid vehicle, and hydrogen electric vehicle, as defined in Article 2 of the Act on Promotion of Development and Distribution of Environment-Friendly Motor Vehicles.

    Energy Usage Target
    POSCO sets annual energy usage targets and systematically monitors performance.
    Energy consumption is calculated across all business sites, including steelworks, by aggregating the use of by-product gases, LNG, and electricity—our primary energy sources. In 2024, our energy consumption target was 380,014 TJ, while actual consumption totaled 374,298TJ—exceeding the target by 5,716 TJ.
    Metric Unit 2024 Targets 2024 Results
    Energy Use*TJ380,014374,298
    Note: Only by-product gas, LNG, and electricity were included in the company-wide total. Electricity usage was calculated based on the national standard for gross calorific value.

    Energy Management

    Energy Efficiency Management System
    POSCO previously managed energy use on a plant-by-plant basis with a primary focus on cost. In recent years, however, we have been shifting to a facility-level, efficiency-oriented energy management system. This transition enables more precise oversight by incorporating environmental indicators and conducting cost comparisons at the individual facility level. Since 2023, we have operated select plants as pilot sites, and starting in 2024, we are expanding the system to cover more plants.
    Preparing for the Energy Transition
    To ensure a smooth transition to a decarbonized system, POSCO is reducing its reliance on blast furnace operations and shifting toward an ironmaking process centered on electric arc furnaces (EAFs) and hydrogen-based reduction technologies.
    As the use of blast furnaces declines, self-generated energy derived from by-product gas will also decrease. Meanwhile, overall electricity consumption at steelworks is expected to rise due to the expansion of power-intensive facilities, such as fluidized bed reduction furnaces used in hydrogen reduction ironmaking. To address this shift, POSCO is actively exploring carbon-free energy sources, including renewables, to support RE100-compliant products for customers and achieve decarbonization. In the short term, we are meeting customer demands by securing Green Premium, Renewable Energy Certificate (REC), and other renewable energy supply-related certificates available under the Korean RE100 system. Over the long term, we plan to expand in-house renewable energy generation by utilizing available land within our steelworks and explore power purchase agreements (PPAs) with renewable energy providers to ensure a stable supply of large-scale green power.
    Improving Power Generation Efficiency
    POSCO is committed to enhancing overall energy efficiency, particularly by improving power generation within the steel production process.
    We utilize by-product gas generated during steelmaking as fuel for both steelmaking process and on-site power generation. In 2024, 85% of the electricity used at our steelworks was self-generated through this method. To further enhance efficiency, we are rationalizing aging, low-efficiency power generation facilities and developing technologies to predict the generation and consumption of by-product gas in real time, thereby minimizing waste emissions. We are also investing in the expansion, replacement, and enhancement of energy recovery facilities, alongside process innovations aimed at reducing energy consumption. In parallel, facility upgrades and R&D are being pursued to increase the recovery rate of by-product gases. Additionally, beginning in September 2023, we launched the Annual Energy Saving Idea Contest to encourage employee participation in improving energy efficiency. Selected ideas are refined and implemented in accordance with each site’s specific conditions.
    Managing Energy Saving Targets and Identifying Challenges

    Year after year, POSCO builds on its efforts to identify energy-saving opportunities. Through its energy management system, we monitor energy consumption in real time and analyze usage patterns to explore more efficient energy utilization methods. In addition, we have established procedures for reviewing the installation of rooftop solar panels when investing in new facilities with a roof area of 6,000 m² or more. 

    1. Steam Generator Rationalization Project at Gwangyang Works (Units 3 and 4)

    As of 2024, Gwangyang Works generates 95.8% of its electricity on-site using by-product gas from the steel production process. This is achieved through three main methods: steam power generation, by-product combined-cycle generation, and natural gas-based LNG power generation. In steam power generation, electricity is produced by turbines driven by steam as the working fluid. By-Product combined-cycle generation uses by-product gas to operate gas turbines and recover heat for additional steam generation, enhancing efficiency. In 2023, we replaced end-of-life components in the boilers and generators of Units 3 and 4 to enhance operational reliability. In addition, outdated turbines were upgraded to the latest models, improving power generation efficiency by approximately 2.5%. As a result, we reduced annual energy consumption by 97 GWh, which translated into lower energy procurement costs and a reduction of approximately 40,000 tons in annual carbon emissons. 

    2. Temperature Control Optimization Program for Hot Blast Stoves

    To produce molten iron from iron ore in a blast furnace, a continuous supply of ultra-high-temperature air exceeding 1,000°C is required. This hot air is generated by passing air through the regenerating chamber of a hot blast stove. Therefore, maintaining sufficient stored heat in the regenerating chamber is essential to achieve the target air temperature and improve thermal efficiency. At Gwangyang Works, the Ironmaking Department and the Electrical, Instrument & Control (EIC) Technology Department are working to optimize hot blast stove temperature control for each blast furnace units 1 through 5, tailoring operations to the specific conditions of each facility. As part of these efforts, ten new control functions have been developed and implemented, customized to the unique needs of each blast furnace. In addition, the flexibility of wind temperature control has been improved by identifying the optimal pressure and calorific value of the mixed gas used to rapidly restore heat storage in stoves where deterioration is detected. As a core facility directly linked to blast furnace operations, the hot blast stove benefits significantly from the development of wind temperature control systems, which help stabilize operations by minimizing wind temperature fluctuations. Improved thermal efficiency also enables a reduction in mixed gas consumption. 

    3. Completion of an Eco-Friendly Integrated Fulfillment Center

    In April 2024, POSCO completed construction of the POSCO PF Center in the Gwangyang National Industrial Complex. The center is equipped with a 1.4 MW rooftop solar power system—enough to supply electricity to more than 500 households annually—allowing for eco-friendly, self-sufficient power generation. Construction of the 50,000 m² center—roughly equivalent to seven soccer fields—began in November 2022 with an investment of KRW 90 billion. It is equipped with 34,000 storage cells capable of accommodating materials of various sizes, from small to large. The POSCO Fulfillment Center has significantly boosted productivity through the use of high-capacity racking systems operated by stacker cranes, cube-shaped automated warehouses with robotic storage, and autonomous mobile robots. Additionally, the application of a Warehouse Management System (WMS)—which predicts material demand and manages inventory based on data—has enhanced system efficiency across all stages, from material storage to delivery tracking.