LG Chem (KRX:051910) and Posco (KRX:005490) partnered to advance carbon neutrality through a joint Carbon Capture and Utilization (CCU) project, backed by South Korea's Ministry of Science and ICT, LG Chem said in a Wednesday release.

The initiative will convert carbon monoxide captured at Posco's Pohang steelworks into carbon monoxide and hydrogen--key inputs in steelmaking--using LG Chem's proprietary dry reforming of methane technology, the release said.

The partnership aims to lower coal dependence, lower emissions, and create valuable byproducts for chemicals and fuel, it said.