Australian miner BHP and South Korean steelmaker POSCO have signed a memorandum of understanding (MoU) to collaborate on the development and testing of POSCO’s HyREX hydrogen reduction ironmaking technology, a process designed to achieve near-zero emissions in steel production.
The partnership will focus on advancing hydrogen-based direct reduced iron (DRI) technology using fluidized bed reactors (FBR) and an electric smelting furnace (ESF), both key components of the HyREX process.
HyREX demonstration plant to begin operations in 2028
The HyREX process replaces coal with hydrogen as the reducing agent, enabling fine iron ore to be used directly without the need for pelletizing, a major advantage over conventional shaft-based DRI systems. This innovation supports lower capital and energy intensity, aligning with the International Energy Agency’s (IEA) near-zero steel benchmark of 0.40 tCO₂e per ton of crude steel for ore-based routes.
Under the new MoU, BHP’s Pilbara iron ore will be supplied for testing at POSCO’s HyREX demonstration plant in Pohang, South Korea. The facility, the first large-scale hydrogen-based FBR-ESF ironmaking plant, will have an annual capacity of 300,000 metric tons. Construction is expected to begin soon, with commissioning scheduled for early 2028.