What's Happening?
BHP Group and POSCO have signed a memorandum of understanding to advance hydrogen-based ironmaking technology. The collaboration focuses on POSCO's HyREX process, which uses hydrogen in fluidised bed reactors
and an electric smelting furnace to produce direct reduced iron. The companies will share technical expertise and conduct trials using BHP's Pilbara iron-ore at POSCO's HyREX demonstration plant in South Korea. The project aims to decarbonise the steel sector by reducing emissions in ironmaking processes.
Why It's Important?
The collaboration between BHP and POSCO is significant for the steel industry, as it addresses the need for sustainable and low-emission production methods. Hydrogen-based ironmaking technology has the potential to significantly reduce carbon emissions, contributing to global efforts to combat climate change. The partnership also highlights the importance of international cooperation in developing innovative solutions for industrial decarbonisation. Successful implementation of the HyREX process could set a precedent for other companies in the steel sector to adopt similar technologies.
What's Next?
The collaboration will involve technical trials and the development of a demonstration plant, with construction expected to begin soon and commissioning targeted for 2028. The success of the project could lead to wider adoption of hydrogen-based ironmaking technology in the steel industry. BHP and POSCO's partnership may also inspire further collaborations between companies and countries to advance sustainable industrial practices.
