BHP and POSCO collaborate to advance HyREX pig iron technology to produce near-zero emissions

Australian mining company BHP and South Korean steel company POSCO have signed a memorandum of understanding (MoU) to collaborate on the development and testing of POSCO HyREX hydrogen reduction cast iron technology, a process designed to achieve near zero emissions from steel production.

The partnership will focus on advancing hydrogen-based direct iron reduction (DRI) technology using fluidized bed reactors (FBR) and electric melting. The furnace (ESF), both key components of the HyREX process.

The HyREX demonstration plant will be operational in 2028

In the HyREX process, coal is replaced with hydrogen as a reducing agent, allowing fine-grained iron ore to be used directly without the need for pelletizing, which is a major advantage over conventional DRI mining systems. This innovation helps to reduce capital and energy consumption, which is in line with the International Energy Agency (IEA) near-zero steel content standard of 0.40 TCOE per ton of crude steel for routes using ore.

Under the new memorandum of understanding, BHP's Pilbara iron ore will be supplied for testing at the POSCO HyREX demonstration plant in Pohang, South Korea. The plant, the first large-scale FBR-ESF pig iron production plant powered by hydrogen, will have an annual capacity of 300,000 metric tons. Construction is expected to begin soon, with commissioning scheduled for early 2028.