POSCO and BHP to Test Iron Ore for Hydrogen-Based Steelmaking

Before hydrogen can replace coal in steelmaking, POSCO says it must first determine which iron ore can reliably feed the process.

The South Korean steelmaker signed a cooperation agreement with Australian mining company BHP on Sept. 3 at POSCO’s Cheongsongdae site in Pohang. Under the deal, POSCO will apply BHP iron ore to its HyREX hydrogen-reduction steelmaking process and test performance under different raw-material conditions.

The tests will examine how ore characteristics and quality affect process stability and production efficiency. POSCO plans to begin with research equipment, then continue verification at demonstration facilities closer to an actual production plant. The goal is to identify the raw-material conditions needed for commercial operation.

HyREX is a process POSCO aims to commercialize by 2030. Unlike a conventional blast furnace, which uses carbon-based materials such as coke to melt iron ore, HyREX uses hydrogen to remove oxygen from powdered ore and produce direct-reduced iron. An electric melting furnace then turns that material into molten steel.

The technology has attracted attention as the steel industry pursues carbon neutrality, but commercialization still requires hydrogen, low-carbon electricity, major equipment investment, suitable raw materials and reliable supply chains. Ore quality and impurity levels can affect reduction reactions, energy use and production stability, making dependable access to compatible ore a central issue.

BHP will assess whether its ore can serve next-generation low-carbon steelmaking. The companies will share expertise on hydrogen-reduction raw materials and explore the potential to reduce Scope 3 emissions from sourcing and transporting materials across the value chain. POSCO said the partnership could expand to other global raw-material suppliers.

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This partnership is highly meaningful because a steelmaker and a global raw-material supplier are preparing together for the future of low-carbon steelmaking. Starting with BHP, we will expand cooperation with global raw-material companies and accelerate the development of low-carbon steelmaking technologies.