BHP and Posco collaborate on hydrogen-based iron production

Mining group BHP and South Korean steel producer Posco have signed a memorandum of understanding to work together on the further development of a virtually emission-free iron production technology. At the heart of the collaboration is Posco’s hydrogen-based direct reduction technology, HyreX.

The technology comprises a hydrogen-based production process for direct reduced iron (DRI) using fluidised bed reactors (FBR) and an electric smelting furnace (ESF) process for smelting the reduced iron.
The companies intend to share their technical expertise and conduct trials using BHP’s Pilbara iron ore at Posco’s Hyrex demonstration plant in Pohang, South Korea. Once completed, this plant will be the first to utilise hydrogen-based FBR technology in conjunction with an ESF for large-scale iron production.
Posco’s FBR and ESF technology is designed so that fine iron ore can be used directly without pelletisation. This distinguishes the technology from conventional shaft-furnace-based DRI processes, in which the ore must be processed into pellets before use.
Posco has already developed the hydrogen-based FBR technology on a laboratory scale and the ESF on a pilot scale. This collaboration will support the technological development of an integrated FBR-ESF demonstration plant for hydrogen reduction with a capacity of 300 ktpa and will include trials using BHP’s Pilbara iron ore.
“BHP is delighted to partner with Posco and looks forward to working with our customers to develop and advance technologies for the decarbonisation of steelmaking,” said Rag Udd, Chief Commercial Officer at BHP.
“This collaboration with Posco is another important step towards decarbonising the steel industry and supports steelworks in potentially exploring multiple pathways to decarbonise steelmaking. It builds on our long-standing collaboration in the field of innovative ironmaking,” said Rag Udd, Chief Commercial Officer at BHP. “We believe the best way we can contribute to advancing the decarbonisation of steelmaking is by supporting our customers in their decarbonisation efforts, promoting the development of technologies and ensuring these technologies can utilise Australian iron ore for decades to come,” Udd continued.
Myungjong Cho, Head of Posco’s Future Steel R&D Centre, explained: “Building on over 20 years of operational experience with the Finex process, Posco is developing Hyrex, a hydrogen-based ironmaking technology using a fluidised-bed reactor. We are currently building a Hyrex demonstration plant with an annual capacity of 300,000 tonnes to validate the process. Through this new research and development partnership with BHP, a global iron ore supplier with extensive expertise in this field, we aim to accelerate Hyrex’s path to commercialisation.” Construction of the Posco demonstration plant at the Pohang steelworks is due to begin shortly, with commissioning scheduled for the calendar year 2028.
The collaboration between BHP and Posco focuses on research and development, demonstrating the performance and assessing the feasibility of Hyrex technology on an industrial scale, thereby underlining both companies’ commitment to innovation and measures to decarbonise steel production.
BHP’s approach to decarbonising steel production involves supporting multiple pathways to tackle this complex challenge, including the decarbonisation of existing blast furnaces using CCUS (carbon capture, utilisation and storage) and other modifications, the emerging DRI route to electric steelmaking (including the DRI-ESF route), and the electrochemical reduction route.
Source: BHP