Called HyREX, the technology combines hydrogen-based direct reduction in fluidized bed reactors with electric smelting furnace. The HyRex process is designed to directly use iron ore fines, eliminating the need for pelletizing.

Under the MoU, BHP and POSCO intend to share technical expertise and undertake trials utilizing BHP’s Pilbara iron ore at POSCO’s HyREX demonstration plant in Pohang, South Korea.

The hope is that the collaboration will support the technology development of a scaled-up, 300,000-metric-ton demonstration plan, which is set to open in 2028.

“This collaboration with POSCO marks another important step towards decarbonizing the steel industry and supporting steel mills to potentially unlock multiple pathways to decarbonize steelmaking,” said BHP chief commercial officer Rag Udd.

“We believe the best role we can play to advance decarbonization steelmaking is to help our customers decarbonize through supporting the development of technologies and enabling those technologies to use Australian iron ore for decades to come.”