Post on 06-Apr-2018
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Green Growth Strategy of POSCO
March 4th
2010
Executive Vice President
Park, Ki-Hong
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2
Background
Vision of Green Growth
Implementation Plan
1. Green Steel
2. Green Business
3. Green Life
4. Green Partnership
I
II
III
Contents
IV Conclusion
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POSCO at a glanceI
History of Creative Management: Ability to Create Something from Nothing
POSCO Overview (09)
Steel Production : Top 3~4th (29.5 Mt)
Employment: 17 thousands employees
Sales : 30Bn USD (3% of GDP, 08)
Evaluations
Davos Forum selected POSCO as GlobalTop 100 company (10.1)
Dow Jones Sustainability Index includedPOSCO as a sustainable leading companyfor 5 consecutive years (09.9)
World Steel Dynamics indicated POSCOas having the world bests competitiveness(WSD, 07)
1980 1990 2007200019701968
3000
2000
1000
Foundation
Pohang worksConstructed
Privatized
NYSE Listed
Gwangyang worksConstructed
FINEXCommercialized
83
92
94
00
07
68
2009
Crude SteelProduction (tons)
- Steel Industry is a core Industry forming the basis of economic growth- POSCO has lead the growth of various Korean industries such as ship-buildingand car-production by supplying basic raw materials.
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Challenges facing POSCOI
Rapidly Changing Business Environment of the Steel Industry, bothDomestic and Overseas
Emerging New Paradigm of Low Carbon and Green Growth
Business Environment Low Carbon and Green Growth
Mega Competition- Mega-steel producer emergedthrough M&A
- Accelerated growth of the Chinese
steel companies
War for securing raw materials
- The variability of raw materials andenergy prices
- Big bargaining power of suppliers
Competitive domestic market
- Lower domestic steel demand- Appearance of a new domestic steelproducer in 2010
Carbon-reduction steel production
Emitting twice the amount of CO2for every ton of steel produced
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(WSA, APP, 07.10)
Environmental Characteristics of the Steel IndustryI
Steel industry, one of the vulnerable industries by GHG regulation
- Responsible for 3.2% of the worlds GHG emission (06, World Resource Institute)
- With the growth of the emerging countries, the world steel production will increasecontinuously (2 bn ton by 2020) Pressure for GHG will consequently increase
Energy Intensity1973 = 100
Around 80% increase in energy efficiencyfor the steel industry in 2000, since 1973
(WSA, 08.10)
Around 50% decrease in energy consumptionfor each ton of crude steel produced in 2004,
compared to 1975
However, the steel industry has markedly improved its energy efficiency
compared to other industries, through continuous tech. developments
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Energy-Saving Activities at POSCOI
Invested around 1bn USD to energy recovery facilities from 99 to 08
[ Installation rate of energy recovery facilities among worlds major steel companies ]
* Calculated by the installationratio of 8 major energy recoveryfacilities such as CDQ (Coke DryQuenching), TRT (Top GasPressure Recovery Turbines), etc.
Saved 2.9M TOE (equivalent to 7M ton of CO2 emission) through voluntaryenergy reduction agreement with the government since 1999
Voluntary agreement : 1st (99~03), 2nd (04~08), 3rd (`09~`13)
13,346
98
11,858
1,488
3,653
04
11,135
2,211
4,330
06
10,492
2,854
6,929
08
B.A.U
Usage
: new facilities: existing facilities : Energy saving
12,716
1,549
00
12,334
2,300
02
[Unit: thousand TOE]
Saving
DCB POSCO97%
44%
A E
49% 51%95%
42%
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Green Growth!Not merely a challenge to overcome,
But also an opportunity to find new business opportunities
GHG Emission reduction activities of POSCOI
Amount of CO2 emission per ton of crude steel production
Calculated by WBCSD/WRI guideline
Data may change based on calculation methods
Relative index
(POSCO = 100)
D (India)C (China)B (Japan)A (Germany)POSCO
100 102 103111 111
However, POSCO still occupies around 8.3% of Koreas nationalenergy consumption and 11% of GHG emission.
The steel industry cannot be devoid of the current challenges in terms ofclimate change
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Steel processInnovation
Development ofAHSS* and ultra-light steel, etc.
Fostering newgreen businessesof POSCO family
Green workplace
Green people andCommunity
Carbon off-setprogram
- 9% Reduction of CO2 emission per ton of steel production by 2020(with reference to the levels recorded in the past 3 years)
- Contribution to 14M tCO2 of social CO2 reduction by manufacturing
of high-efficiency steel products and green businesses
Cooperation for carbonReduction Policy(steel division of APP*,world steel association)
Green technologytransfer to SMEs
Green Steel
Vision of POSCO Green GrowthII
To invest 7bn USD to low carbon steel products andgreen businesses by 2018
To supply 87 thousand jobs in the green-related sectors
Green Business Green Life Green Partnership
Global Green Growth Leader
AHSS: Advanced High Strength Steel, APP: Asia-Pacific Partnership on Clean Development and Climate
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Short-term(~15) Mid-term (~20) Long-term (~50)
Green Steel
H2
FINEXFluidized
beds
Nuclear Reactor
Pig Iron
FOG, SNG
-Hydrogen replaces coalas the reducing material
-Dramatic reduction ofCO2 emission
[ Energy Intensity of Steel
Company (POSCO as 100) ]
* APP (09)
100106 108
119 121124
135
-Improve energy efficiencyof current processes-By heat recovery andreuse
Improvement ofEnergy Efficiency
Development ofNew CO2 reduction
Steel Process
Development ofHydrogen
Steelmaking+%+6%3%
FOG: FINEX Off Gas, SNG: Synthetic Natural Gas
Enforcing Steel Competitiveness
through development of energy-efficient and breakthrough technology
III
CEM (Cont. CastingEndless Mill)
-Energy saving of the reheatingstep by connectingtwo separate processes
POSBOP(POSCO Basic Oxygen Process)
-High energy efficient
innovative steelmakingprocess
-Develop new processesto save energy
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Green Steel
* World Average level of blast furnace(1.88 tCO2/tHM) as 100%
FINEX DEMO FINEX 1.5 Mt
106%
1st Target: 93%
Completed: 97% (08.5)
CCS available : 55%
2nd Target: 90%
FINEX, the world first commercialized innovative steel process (07.5),
to lead the low-carbon steel making process
Iron ore finesNon-coking coal
Coal briquett
Fluidizedbed
Hot compactediron
Pig IronMeltingFurnace
Next generation eco-friendly iron-making process allowing the direct use ofcheap iron ore fines and non-coking coal as feedstock without pre-treatment
High energy efficiency and air pollution reduction by use of pure oxygen- SOx 19%, NOx 10%, Dust 52% level compared to blast furnace
Plan to invest around 60M USD for the plant using FINEX gas pressure (~15)
CO2 emission per ton ofcrude steel
III
FINEX
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High-strength
Steel Sheets
EnergyEfficientMagnetic
Steel Sheets
LightingMaterials
Weight reduction and improved fuel efficiency ofvehicles - Secures same strength level with thinner sheets
260 thousand ton CO2 reduction by 330 thousandton of supply (08)- 8 ton CO2 reduction per ton of sheet
Increasing energy efficiency of transformer, electricmotor and generator
1.7M ton CO2 reduction by 0.3M ton of supply (08)- 5.7 ton CO2 reduction per ton of sheet
Initiation of magnesium sheet production (07.7~)- Production Capability : 3 thousand ton/yr Weight of Magnesium : 23% of Steel, 67% of aluminum
Green Steel
Contributing to Social GHG Reduction through Energy Saving Materials
III
Titanium : airplane, vehicle weight reduction, oceanplant (13~)
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Green BusinessIII
SNG Producing synthetic gas from low-quality coal- Integration with the CO2 capture tech.
Investment of ~1.2bn USD for the SNG plant with0.5M ton/yr capacity (~13)* SNG : Synthetic Natural Gas
Installing plants to generate electricity fromincineration of waste source
Projects using sewage sludge (Suwon and Busan)and RDF (Busan and Pohang) are in process
Waste to Energy
Creating marine forests with steel-slag (00 ~ )- Using steel slag generated from the steel making process- With photosynthesis, marine forests absorb CO2
Making bio-fuel from seaweeds
Developing technology to extract raw materials suchas Magnesium, Lithium, etc. from the ocean (09~ )
Ocean ResourcesOcean Bio
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Workplace
Community
SupplyChain
Communication
Riding a Bike campaign
Green TechnologyTransfer to SMEs (07~)
Green Life & Partnership
Encouraging Voluntary Participation of POSCO Employees and
Cooperating with Relevant Organizations
Making GreenOffice
Publication ofCarbon Report(10~)
Operating POSCO Carbon-zero program (09~)
- www.poscocarbonzero.com
III
Participating in WorldSteel Association
Steel task forceof APP(06~)
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Facing the paradigm of low-carbon and green growth,POSCO endeavors to achieve competitiveness as the leading
company of climate change, through development of
Low carbon steel processes and Green businesses.
(1) Expecting around 10bn USD of sales in the green businesses and
creating 87 thousand jobs in green sectors by investing 7bn USD till 2018
(2) Reducing 9% of CO2 emission per ton of steel production by 2020
(based on the average levels recorded in the past 3 years)
(3) Contributing towards 14M ton of social CO2 reduction by high-efficiency
steel products and green businesses
ConclusionIV
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Thank you!