South Korea's largest steel maker, Posco Holdings, has inaugurated a groundbreaking pilot steel production plant in Pohang that operates on hydrogen instead of conventional fossil fuels, marking a significant step towards achieving carbon neutrality. The pilot facility employs the innovative hydrogen reduction (HyREX) process, which boasts a notable reduction in carbon emissions during steel production. This approach allows the plant to emit only 400kg of carbon per ton of molten iron, a substantial decrease compared to the emissions from coal or natural gas-powered plants prevalent today. Posco envisions a carbon-free operation upon transitioning to renewable energy sources. The global steel industry, known for its high carbon dioxide emissions resulting from fossil fuel interactions with iron ore, is now witnessing a transformative shift towards hydrogen as a clean alternative. Posco's senior vice president overseeing the HyREX project, Bae Jin-Chan, emphasized the revolutionary nature of this technological advancement, highlighting the potential for carbon neutrality to drive innovation rather than pose constraints. Looking ahead, Posco plans to commence the construction of a full-scale HyREX steel plant in early 2025, with an impressive production capacity of 36 tons per hour, slated for completion by 2027. By targeting an annual production of 2.5 million tons of steel through hydrogen-based processes by 2040, the company sets a clear trajectory towards transitioning all steel plants to hydrogen power by 2050, positioning itself as an industry leader in sustainable steel production. This strategic move aligns with global efforts to mitigate carbon emissions and combat climate change, signaling a promising future for eco-friendly steel manufacturing.