POSCO is joining forces with BHP, Australia's largest mining company, to verify raw materials for the commercialization of its proprietary hydrogen-based steelmaking technology.
POSCO signed a hydrogen steelmaking cooperation agreement with BHP on the 3rd at Cheongsongdae in Pohang, North Gyeongsang Province. Under the deal, POSCO plans to use BHP's iron ore to verify HyREX, its own hydrogen reduction steelmaking process.
HyREX produces molten iron without carbon dioxide emissions by using hydrogen as a reducing agent instead of coal, a fossil fuel. POSCO plans to verify whether HyREX operates reliably under various raw material conditions, test how process performance changes according to the characteristics and quality of iron ore, and determine optimal blending conditions.
The two companies also agreed to share technical expertise on raw materials for hydrogen steelmaking and to jointly explore ways to reduce indirect greenhouse gas emissions, known as Scope 3, generated during the raw material supply process.
The agreement follows a memorandum of understanding signed last October in the presence of Australian Prime Minister Anthony Albanese and POSCO Group Chairman Chang In-hwa.
"This partnership carries great significance in that a steelmaker and a global raw material supplier are preparing together for the future of low-carbon steelmaking," said Eom Kyung-keun, head of POSCO's research institute of industrial science and technology. "Starting with BHP, we will expand cooperation with global raw material suppliers and accelerate the development of low-carbon steelmaking technology."
Ben Ellis, BHP's chief marketing and sustainability officer, said the project builds on a long-running collaboration with POSCO on innovative steelmaking technology. He said BHP believes it can play an important role in advancing new technologies and pathways to support the decarbonization of its customers' steelmaking processes, and that it will work to ensure Australian iron ore can be used in low-carbon steelmaking as well.
