Under the preliminary deal, the partners plan to validate the technology ahead of full-scale commercialisation. Posco’s HyRex plant uses fluidised bed reactors (FBR) and electric smelting furnaces (ESF) in its DRI process.

Unlike conventional DRI methods that require pelletised ore, H2 View understands that HyRex can process fine iron ore directly, which could reduce energy consumption and costs.

The demonstration is also expected to support the development of a scaled-up 300,000 tonne per year demonstration plant in Pohang, South Korea, scheduled to start commissioning in early 2028.

“Building on over 20 years of operational experience with the Finex process, Posco is developing HyRex, a hydrogen-based ironmaking technology utilising a fluidised bed reactor,” explained Myungjong Cho, Head of Posco’s Future Steel R&D centre.

“We are currently constructing a HyRex demonstration plant with an annual production capacity of 300,000 tons to validate the process.

“Through this new R&D partnership with BHP, a global iron ore supplier bringing a wealth of know-how in the field, we’re looking to fast-track HyRex’s journey to commercial operation.”

For BHP, the agreement with Posco reflects its strategy to support “multiple” low-carbon steelmaking pathways, according to Chief Commercial Officer Rag Udd, such as DRI-ESF, carbon capture, and electrochemical reduction technologies.

BHP has previously partnered with steelmakers, including Chin Baowu and ArcelorMittal, on similar R&D initiatives.