In order to reduce carbon emissions from the steelmaking process and achieve carbon neutrality,
global steel companies are establishing their own medium to long-term strategies and
implementation plans using competitive technological advantages held by each steel company. At
this point, Hyundai Steel has formulated a product-oriented carbon-neutral strategy based on
innovative processing that makes use of Hyundai Steel’s own strength. Based on our experience in
electric arc furnace product manufacturing and blast furnace operation in an integrated steel mill,
Hyundai Steel is driving the Hy3 (Hy-cube) project, which involves a unique hybrid production system
utilising hydrogen and hydrogen-based renewable energy sources. This initiative aims to achieve
carbon-neutral production and eventually specialise in producing premium carbon-neutral
automotive parts. The project has originality in that it involves not only designing processes using
electric furnaces to produce premium steel products such as car body panels and electrical steel
sheets, but also aims to reduce carbon emissions from the process, developing carbon-neutral
products based on market demand. To assess the feasibility of the Hy3 project, Hyundai Steel
conducted two pilot productions. The first pilot was producing a prototype of lower-arm part using
electric arc furnace with three different kinds of raw materials: molten iron, HBI (hot briquetted iron),
and scrap. Successful performance evaluation of auto parts with 1 GPa strength was achieved. The
second pilot has been focused on tire cord steel, with the first-phase tests yielding a 33 per cent
reduction in carbon footprint (CFP). Using the advantages of operating experience in electric arc
furnace, Hyundai Steel is preparing for test operations producing various automotive parts using an
electric arc furnace (EAF) to advance the Hy3 concept. From a medium to long-term technological
development perspective, Hyundai Steel’s blueprint includes producing high-end carbon-neutral
steel products using hydrogen-reduced iron as raw material.