POSCO is joining hands with Australian mining company BHP to begin commercial technology verification of HyREX, a hydrogen-reduction steelmaking process.
POSCO said on the 3rd that it signed a hydrogen-reduction steelmaking cooperation agreement with BHP at Cheongsongdae in Nam-gu, Pohang, North Gyeongsang Province. POSCO plans to test HyREX performance under various feed conditions using iron ore supplied by BHP.
HyREX is a technology that produces molten iron using hydrogen as the reducing agent instead of coal. POSCO will verify whether the process operates stably under real feed conditions and test how process performance changes depending on the characteristics and quality of iron ore to derive optimal feed conditions.
BHP is a raw materials supplier that has provided iron ore, metallurgical coal and nickel to POSCO. Through this collaboration, it will verify the applicability of its iron ore in next-generation low-carbon steelmaking processes. The two companies will share raw material technology know-how required for hydrogen-reduction steelmaking and explore ways to reduce Scope 3 carbon emissions generated in the raw material supply process.
The agreement is a follow-up to the memorandum of understanding (MOU) the two companies signed on Oct. last year in the presence of Australian Prime Minister Anthony Albanese and POSCO Group Chairman Chang In-hwa. In 2024, POSCO signed a HyREX technology cooperation with engineering corporations Primetals, and has now expanded its partners to include the raw materials supplier BHP.
Eom Kyung-geun, head of POSCO's Research and Technology, said, "This partnership is meaningful in that a steelmaker and a global raw materials supplier are preparing together for the future of low-carbon steelmaking," and added, "Starting with BHP, we will broaden cooperation with global raw materials suppliers and accelerate the development of low-carbon steelmaking technology."
Ben Ellis, head of BHP marketing and sustainability institutional sector, said, "This project is an extension of the longstanding collaboration with POSCO on innovative steelmaking technologies," and added, "We will help ensure Australian iron ore can be used in low-carbon steelmaking technologies as well."