South Korean steel manufacturer Posco Holdings and chemical company LG Chem have announced a partnership to pilot carbon capture and utilisation (CCU) technology at the Pohang steelworks. The project involves converting CO2 from steelmaking into synthetic gas through dry methane reforming. This synthetic gas, or syngas, composed of carbon monoxide and hydrogen, can be used as a reducing agent in steel production or as a feedstock for chemical manufacturing, including plastics and fuels. The initiative is part of South Korea's national CCU Mega Project led by the Ministry of Science to advance CCU technologies in high-emission sectors such as steel and petrochemicals. The program supports pilot-scale projects that aim to convert captured CO2 into valuable industrial inputs. The partnership between Posco Holdings and LG Chem is a significant step towards carbon neutrality, with plans for a design phase in 2026, construction in 2028, and demonstration operations until 2030. Other projects under the CCU Mega Project include GS Caltex's development of CO2-derived polyols at its Yeosu Industrial Complex. While the use of CCU technologies shows promise in reducing emissions, challenges remain. The scalability, energy intensity, and cost efficiency of processes like dry methane reforming need to be addressed for successful commercial implementation. The steel sector's high CO2 emissions highlight the importance of such initiatives in transitioning to more sustainable production methods. The collaboration between Posco Holdings and LG Chem represents a crucial effort in driving the steel and chemical industries towards a greener, more sustainable future.