BHP and POSCO will work together to progress ‘near zero emissions’ ironmaking technology under an MoU signed, advancing POSCO’s H₂ reduction ironmaking technology (HyREX). The technology consists of a H₂-based direct reduced iron (DRI) production process using fluidized 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 utilizing BHP’s Pilbara iron ore at POSCO’s HyREX demonstration plant in Pohang, South Korea – which, when completed, will be the first facility using H₂-based FBR technology integrated with an ESF for ironmaking at scale.

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

0.40 tons of CO₂e per ton of crude steel for 100% 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). IEA (2022), Achieving Net Zero Heavy Industry Sectors in G7 Members, IEA, Paris, License: CC BY 4.0.

POSCO has already been developing the H₂-based FBR technology at lab-scale and the ESF at pilot-scale. This collaboration will support the technology development of a scaled-up 300 ktpa integrated H₂ reduction FBR-ESF demonstration plant and include trials using BHP’s Pilbara iron ore.

“BHP is excited to partner with POSCO and continue working alongside our customers in developing and advancing decarbonization steelmaking technology,” BHP Chief Commercial Officer Rag Udd said.

“This collaboration with POSCO marks another important step towards decarbonizing the steel industry and supporting steel mills to potentially unlock multiple pathways to decarbonize steelmaking. This continues our longstanding collaboration in innovative ironmaking.

“We believe the best role we can play to advance decarbonization steelmaking is to help our customers decarbonize 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 H₂-based ironmaking technology utilizing a fluidized 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 early 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 decarbonization of steelmaking.

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