BHP and South Korea’s POSCO have joined forces to accelerate a hydrogen-based ironmaking technology that could slash steelmaking emissions.
Under a new memorandum of understanding (MoU), the companies will advance POSCO’s HyREX technology, a hydrogen reduction ironmaking process using fluidised bed reactors (FBR) and an electric smelting furnace (ESF) to produce near-zero-emissions iron.
The partnership will see the companies share technical expertise and run trials using BHP’s Pilbara iron ore at POSCO’s HyREX demonstration plant in Pohang, South Korea.
Once completed, it will be the first facility to integrate hydrogen-based FBR technology with an ESF for large-scale ironmaking.
Unlike traditional direct reduced iron (DRI) methods that require pelletised ore, POSCO’s FBR and ESF system can use fine iron ore directly, improving efficiency and reducing processing emissions.
The HyREX process targets around 0.4 tonnes of CO2-equivalent per tonne of crude steel, meeting the International Energy Agency’s near-zero threshold.
“BHP is excited to partner with POSCO and continue working alongside our customers in developing and advancing decarbonisation steelmaking technology,” BHP chief commercial officer Rag Udd said.
“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,”
POSCs head of future steel R&D (research and development) centre Myungjong Cho said the trials are building on more than 20 years of operational experience with the FINEX process.
“We are currently constructing a HyREX demonstration plant with an annual production capacity of 300,000 tons to validate the process,” he said.
“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 the Pohang demonstration plant is set to begin soon, with commissioning expected by early 2028, marking a key milestone in the global race to decarbonise steel.
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