Hydrogen Reduction Ironmaking Technologies

BHP and POSCO have signed a new Memorandum of Understanding to advance hydrogen-based ironmaking through POSCO’s HyREX technology, a major step toward near-zero emissions steel production. The collaboration will focus on refining POSCO’s fluidised bed reactor (FBR) and electric smelting furnace (ESF) processes, which use hydrogen instead of coal to reduce iron ore -- an approach that could drastically cut the carbon footprint of steelmaking. The partnership includes technical trials using BHP’s Pilbara iron ore at POSCO’s upcoming HyREX demonstration plant in Pohang, South Korea. Set to produce up to 300,000 tonnes of hydrogen-reduced iron annually, the facility will be the first of its kind to integrate FBR and ESF systems at scale. Unlike conventional processes, HyREX can utilize fine iron ore directly, eliminating the need for pelletising and further improving efficiency. This initiative reflects both companies’ long-term commitment to decarbonising heavy industry. By combining BHP’s raw material expertise with POSCO’s innovative hydrogen reduction methods, the collaboration aims to establish new pathways for sustainable steel production and accelerate the global transition to low-carbon materials.

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