Green Growth Strategy of POSCO
March 4th 2010
Executive Vice PresidentPark, Ki-Hong
2
Background
Vision of Green Growth
Implementation Plan1. Green Steel2. Green Business3. Green Life4. Green Partnership
I
II
III
Contents
IV Conclusion
3
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 included POSCO as a sustainable leading company for 5 consecutive years (’09.9)
World Steel Dynamics indicated POSCOas having the world best’s competitiveness(WSD, ’07)
1980 1990 2007200019701968
≈
3000
2000
1000
Foundation
Pohang worksConstructed
Privatized
NYSE Listed
Gwangyang worksConstructed
FINEX Commercialized
83
9294
00
07
68
2009
Crude Steel Production (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-building and car-production by supplying basic raw materials.
4
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 CO2
for every ton of steel produced
5
(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 world’s 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
6
Energy-Saving Activities at POSCOI
Invested around 1bn USD to energy recovery facilities from ’99 to ’08
[ Installation rate of energy recovery facilities among world’s major steel companies ]* Calculated by the installation ratio 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 voluntary energy 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%
7
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 Korea’s nationalenergy consumption and 11% of GHG emission. The steel industry cannot be devoid of the current challenges in terms of
climate change
8
• Steel process Innovation
• Development of AHSS* and ultra-light steel, etc.
• Fostering newgreen businesses of 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 carbon Reduction Policy (steel division of APP*, world steel association)
• Green technologytransfer to SMEs
Green Steel
Vision of POSCO Green Growth II
• To invest 7bn USD to low carbon steel products and green 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
9
Short-term(~’15) Mid-term (~’20) Long-term (~’50)
Green Steel
H2
FINEXFluidized
beds
Nuclear Reactor
Pig IronFOG, SNG
-Hydrogen replaces coal as the reducing material-Dramatic reduction of CO2 emission
[ Energy Intensity of Steel Company (POSCO as 100) ]
* APP (’09)
100 106 108119 121 124
135
포스코
-Improve energy efficiency of current processes-By heat recovery and reuse
Improvement ofEnergy Efficiency
Development of New CO2 reduction
Steel Process
Development ofHydrogen
Steelmaking+α%↓+6%↓3%↓
※ FOG: FINEX Off Gas, SNG: Synthetic Natural Gas
Enforcing Steel Competitivenessthrough development of energy-efficient and breakthrough technology
III
• CEM (Cont. CastingEndless Mill)
-Energy saving of the reheating step by connectingtwo separate processes
• POSBOP (POSCO Basic Oxygen Process)
-High energy efficientinnovative steelmakingprocess
-Develop new processesto save energy
10
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
Fluidized bed
Hot compacted iron
Pig IronMelting Furnace
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 of crude steel
III
FINEX
11
High-strength
Steel Sheets
Energy Efficient Magnetic
Steel Sheets
LightingMaterials
• Weight reduction and improved fuel efficiency ofvehicles - Secures same strength level with thinner sheets
• 260 thousand ton CO2 reduction by 330 thousand ton of supply (’08) - 8 ton CO2 reduction per ton of sheet
• Increasing energy efficiency of transformer, electric motor 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, ocean plant (’13~)
12
Completed wind power plant construction on Mt. Taegi in Gangwon province by POSCO E&C (’08.12, 40MW)
Plan to invest around 1bn USD to wind power andocean energy field (~’18)
Wind powerOcean Energy
Smart Grid One of 10 transformative technologies announcedat MEF (Major Economies Forum on Energy and climate) inCopenhagen (’09.12)
Focusing on Smart Grid especially available forenergy- intensive industries with investment of 0.4bn USD (~`18, POSCO ICT)
Green BusinessIII
Taegisan Wind power of POSCO E&C
Installed stationary fuel cell plant by POSCO POWER(’08.9)
Around 0.5bn USD will be invested on the tech. ofnext generation SOFC (Solid Oxide Fuel Cell) till 2018
Fuel Cell
Fuel cell plant of POSCO POWER
Creating New Core Business based on POSCO Subsidiaries’ Capabilities
POSCO ICT
13
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 with 0.5M 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
14
Workplace
Community
Supply Chain
Communication
▣ Riding a Bike campaign
▣ Green TechnologyTransfer to SMEs (’07~)
Green Life & Partnership
Encouraging Voluntary Participation of POSCO Employees andCooperating 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~)
15
“Facing the paradigm of low-carbon and green growth,
POSCO endeavors to achieve competitiveness as the leading company of climate change, through development ofLow carbon steel processes and Green businesses.”
(1) Expecting around 10bn USD of sales in the green businesses andcreating 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-efficiencysteel products and green businesses
ConclusionIV
16
Thank you!
Top Related