BHP, POSCO Plan Hydrogen-Based Near Zero Emissions Ironmaking Demo Plant

BHP and South Korean steelmaker POSCO have signed a memorandum of understanding to advance POSCO's hydrogen-based ironmaking technology called HyREX, which aims to produce near-zero emissions iron. The technology combines a hydrogen-based direct reduced iron (DRI) process using fluidised bed reactors (FBR) with an electric smelting furnace (ESF), allowing the use of fine iron ore directly without pelletising, thus improving efficiency and reducing emissions. Trials will be conducted using BHP's Pilbara iron ore at POSCO's demonstration plant in Pohang, South Korea, which is expected to produce 300,000 tons annually and be commissioned by early 2028. This partnership represents a significant step toward decarbonising steel production, targeting emissions of around 0.4 tonnes of CO2 equivalent per tonne of crude steel, meeting international near-zero emissions standards. BHP emphasizes the importance of supporting steel mills in unlocking multiple pathways to decarbonize steelmaking, continuing its longstanding collaboration with POSCO. The new technology could help address the steel sector's substantial contribution to global emissions, which currently accounts for 8%, by replacing traditional blast furnace methods that emit significantly higher carbon dioxide levels.