BHP and POSCO Partner to Advance Hydrogen-Based Ironmaking Technology

BHP and POSCO will work together to progress near zero emissions ironmaking technology under an MoU signed today, advancing POSCO’s hydrogen reduction ironmaking technology (HyREX).

The technology consists of a hydrogen-based direct reduced iron (DRI) production process using fluidised bed reactors (FBR) and an electric smelting furnace (ESF) process for melting the reduced iron.

The companies intend to share technical expertise and undertake trials utilising BHP’s Pilbara iron ore at POSCO’s HyREX demonstration plant in Pohang, South Korea — which, when completed, will be the first facility using hydrogen-based FBR technology integrated with an ESF for ironmaking at scale.

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POSCO’s FBR and ESF technology is designed to use fine iron ore directly without pelletising. This differs from conventional shaft-based DRI processes, which require the ore to be processed into pellets before use.

POSCO has already been developing the hydrogen-based FBR technology at lab-scale and the ESF at pilot-scale. This collaboration will support the technology development of a scaled-up 300ktpa integrated hydrogen reduction FBR-ESF demonstration plant and include trials using BHP’s Pilbara iron ore.

Rag Udd, Chief Commercial Officer of BHP, said:“BHP is excited to partner with POSCO and continue working alongside our customers in developing and advancing decarbonisation steelmaking technology. This collaboration with POSCO marks another important step towards decarbonising the steel industry and supporting steel mills to potentially unlock multiple pathways to decarbonise steelmaking. This continues our longstanding collaboration in innovative ironmaking. We believe the best role we can play to advance decarbonisation steelmaking is to help our customers decarbonise through supporting the development of technologies and enabling those technologies to use Australian iron ore for decades to come.”

Mr. Myungjong Cho, Head of POSCO’s Future Steel R&D Center, stated:“Building on over 20 years of operational experience with the FINEX process, POSCO is developing HyREX, a hydrogen-based ironmaking technology utilising a fluidised bed reactor. We are currently constructing a HyREX demonstration plant with an annual production capacity of 300,000 tons to validate the process. Through this new R&D partnership with BHP, a global iron ore supplier bringing a wealth of know-how in the field, we’re looking to fast-track HyREX’s journey to commercial operation.”

Construction of POSCO’s demonstration plant at the Pohang Steelworks is expected to begin soon, with commissioning targeted for CY2028.

The BHP and POSCO collaboration is focused on research and development, demonstrating performance, and evaluating the feasibility of the HyREX technology at scale, reinforcing both companies’ commitment to innovation and steps to enable the decarbonisation of steelmaking.

BHP’s approach to steel decarbonisation is to support multiple pathways to address this complex challenge, including decarbonisation of the existing blast furnace with CCUS (carbon capture, utilisation and storage) and other modifications, the emerging DRI–electric steelmaking pathway (which includes the DRI–ESF pathway), and the electrochemical reduction route.

0.40 tonnes of CO2-e per tonne of crude steel for 100 per cent ore-based production (no scrap), as defined by the International Energy Agency (IEA) and implemented in ResponsibleSteel International Standard V2.0 (‘near zero’ performance level 4 threshold).