Steel’s Carbon Challenge: Can Hazer and POSCO Deliver Decarbonisation?
Hazer Group has extended its collaboration with South Korean steel giant POSCO to further integrate its clean hydrogen and low-emissions graphite technology into low-carbon steel production.
- Two-year extension of non-binding MOU between Hazer and POSCO
- Successful testing of Hazer’s graphite in steelmaking applications
- Focus on decarbonising steel industry responsible for 8% of global CO2 emissions
- Hazer technology produces clean hydrogen and high-purity graphite using iron ore
- POSCO aims for carbon neutrality by 2050 leveraging innovative materials
Strategic Collaboration Extended
Hazer Group Limited (ASX, HZR), an Australian climate-tech innovator, has announced a two-year extension of its non-binding Memorandum of Understanding (MOU) with POSCO Steel, one of the world’s largest steel producers based in South Korea. This extension builds on a partnership initiated in May 2024, aimed at integrating Hazer’s proprietary clean hydrogen and low-emissions graphite technology into POSCO’s low-carbon steelmaking processes.
The collaboration follows promising initial testing of Hazer’s graphite by POSCO across multiple steelmaking and industrial applications. These tests are ongoing, reflecting the potential for Hazer’s technology to play a pivotal role in reducing the carbon footprint of steel production.
Addressing a Major Source of Global Emissions
Steelmaking is notoriously carbon-intensive, accounting for over 8% of global CO2 emissions. Hazer’s technology offers a novel approach by co-producing clean hydrogen and high-purity graphite using iron ore as a catalyst. This dual output is particularly relevant for steel manufacturers seeking to transition away from traditional fossil fuel-based methods.
Hydrogen is increasingly recognised as a key enabler for decarbonising steel production, especially in processes like Direct Reduced Iron (DRI) and Electric Arc Furnace (EAF) steelmaking. Meanwhile, the graphite produced can potentially replace more carbon-intensive materials used in blast furnaces and other industrial applications.
POSCO’s Ambitious Carbon Neutrality Goals
POSCO has publicly committed to achieving carbon neutrality by 2050. Beyond steel, the company is diversifying into sectors such as rechargeable battery materials, hydrogen energy, and green infrastructure, positioning itself as a leader in sustainable industrial innovation. The partnership with Hazer aligns with POSCO’s strategy to integrate cutting-edge technologies that reduce emissions while maintaining industrial competitiveness.
Hazer’s CEO Glenn Corrie emphasised the strategic importance of this collaboration, highlighting the complementary nature of Hazer’s technology with POSCO’s low-carbon steelmaking ambitions. The extension signals confidence in the technology’s potential and the growing momentum behind hydrogen and graphite solutions in heavy industry decarbonisation.
Looking Ahead
While the MOU remains non-binding, the extension provides a clear pathway for deeper engagement and potential formal agreements. The ongoing testing and development phase will be critical in demonstrating commercial viability and scalability. For investors and industry watchers, the partnership exemplifies the increasing convergence of clean technology and traditional heavy industry as the global economy seeks sustainable growth.
Bottom Line?
Hazer and POSCO’s extended collaboration marks a significant step toward cleaner steel, but commercialisation timelines remain uncertain.
Questions in the middle?
- When might formal binding agreements be signed to commercialise Hazer’s technology with POSCO?
- How will Hazer’s graphite and hydrogen outputs integrate with existing steelmaking infrastructure at scale?
- What are the projected cost implications and emissions reductions achievable through this technology?
