BHP and POSCO will work together to progress near zero emissions iron-making technology under an MoU signed, advancing POSCO’s hydrogen reduction iron-making technology (HyREX).
The technology consists of a hydrogen-based direct reduced iron (DRI) production process using fluidized bed reactors (FBR) and an electric smelting furnace (ESF) process for melting the reduced iron.
The companies intend to share technical expertise and undertake trials utilizing BHP’s Pilbara iron ore at POSCO’s HyREX demonstration plant in Pohang, South Korea. POSCO’s FBR and ESF technology is designed to use fine iron ore directly without pelletizing.
POSCO has already been developing the hydrogen-based FBR technology at lab-scale and the ESF at pilot-scale. This collaboration will support the technology development of a scaled-up 300ktpa integrated hydrogen reduction FBR-ESF demonstration plant and include trials using BHP’s Pilbara iron ore.
“BHP is excited to partner with POSCO and continue working alongside our customers in developing and advancing decarbonization steelmaking technology,” BHP Chief Commercial Officer Rag Udd said.
“Building on over 20 years of operational experience with the FINEX process, POSCO is developing HyREX, a hydrogen-based ironmaking technology utilizing a fluidized bed reactor. We are currently constructing a HyREX demonstration plant with an annual production capacity of 300,000 tons to validate the process. Through this new R&D partnership with BHP, we are looking to fast-track HyREX’s journey to commercial operation,” stated Mr. Myungjong Cho, head of POSCO’s Future Steel R&D Center.
Construction of POSCO’s demonstration plant at the Pohang Steelworks is expected to begin soon, with commissioning targeted for CY2028.