PVTIME – On 3 September 2026, POSCO and the global mining company BHP signed the HyREX Collaboration Agreement at POSCO’s Pohang Steelworks. This agreement marks a significant step forward in the development of hydrogen-based, near-zero-emission steelmaking technology, moving it beyond the experimental research phase.
Based on a memorandum of understanding signed in October 2025, the new agreement will enable the practical validation of POSCO’s proprietary HyREX hydrogen-reduction iron-making process using Pilbara iron ore sourced from BHP. Trials will be conducted in newly built pilot and demonstration facilities in Pohang. The planned demonstration plant is designed to produce 300,000 tonnes per year and is expected to be commissioned in early 2028.
HyREX uses hydrogen rather than coal as a reducing agent within fluidised-bed reactors. The technology is unique in that it can process fine iron ore directly without pelletising, feeding reduced material into an electric smelting furnace for hot-metal production.
The joint project will address key technical barriers related to scaling up for low-carbon steel production. The partners will test the real-world performance of the technology using mainstream Pilbara ore feedstock and refine the technical specifications ahead of a full-scale commercial rollout. In addition to process testing, the two firms will exchange technical know-how related to raw materials and explore opportunities to reduce indirect greenhouse gas emissions (Scope 3) across the iron ore supply chain.
