 |
| HyREX iron production technology |
POSCO and BHP Collaborate on Hydrogen-Based Ironmaking
Australian mining giant BHP and South Korean steel producer POSCO have signed a memorandum to enhance HyREX iron production technology. The partnership targets near-zero emission steel production. They will test Pilbara iron ore from BHP at POSCO’s demonstration plant in Pohang. As a result, the project represents a major step toward sustainable ironmaking using hydrogen-based direct reduced iron (DRI) and electric smelting furnace (ESF) technologies.
Meanwhile, POSCO’s unique fluidized bed reactor (FBR) and ESF allow direct processing of fine iron ore without granulation. The demonstration plant aims to integrate FBR and ESF for large-scale hydrogen-based iron production. Commissioning is planned for early 2028, signaling a significant milestone in the global low-carbon steel industry.
Implications for Green Steel and Resource Efficiency
The cooperation emphasizes research, development, and feasibility assessment for large-scale HyREX iron production technology. POSCO also strengthens its eco-friendly steel and battery material strategy. Recently, it launched the Australia Critical Minerals R&D Lab in Perth, focusing on reducing carbon emissions and raw material costs. Consequently, this collaboration could reshape supply chains for low-emission steel while advancing circular economy principles in metals production.
ScrapInsight Commentary
The BHP-POSCO HyREX project underscores the steel industry’s shift toward hydrogen-based DRI and low-emission operations. Large-scale adoption may lower carbon intensity and improve resource efficiency, supporting global decarbonization targets. Investors and policy makers should monitor pilot results as a benchmark for future green steel economics.
