POSCO and BHP cooperate on hydrogen based steel production

POSCO signed the cooperation agreement with BHP as part of its efforts to commercialize the HyREX hydrogen based steel production technology.

BHP’s iron ore to be tested

Under the agreement, POSCO will test iron ore supplied by BHP under different operating conditions. The studies will examine the impact of differences in the quality and characteristics of the ore on the performance of the HyREX process.

Based on the test results, the companies aim to determine the most suitable raw material specifications for commercial production.

Developed by POSCO, HyREX technology uses hydrogen instead of coal as the reducing agent in iron production. The technology is intended to contribute to reducing carbon emissions compared with conventional iron production processes.

Supply chain emissions also to be addressed

BHP will evaluate the suitability of Australian iron ore for next generation iron production technologies. The parties will also exchange technical information and work to reduce Scope 3 emissions across the raw material supply chain.

BHP Vice President Ben Ellis stated that the cooperation represents a continuation of the companies’ long standing innovation efforts in steel production, adding that the use of Australian iron ore in low carbon production processes could be expanded.

Cooperation extends beyond raw material supply

The new agreement follows the memorandum of understanding signed by the parties in October. Signed in the presence of Australian Prime Minister Anthony Albanese and POSCO Holdings CEO Chang In-hwa, the MoU envisaged expanding cooperation between the two companies beyond raw material trading to include joint research and development activities.

Um Kyung-keun, President of POSCO Research Labs, stated that cooperation between a steel producer and a global raw material supplier on the future of low carbon steel production is significant. Um added that POSCO will expand partnerships with global raw material suppliers to accelerate the development of low carbon steel production technologies.