BHP Advances Steel Decarbonisation With 13 Partners
BHP is testing emissions-reduction technologies with 13 of the world's largest steelmakers, backed by US$24 billion in reported commitments.
Updated on Nov. 4, 2026 in Electric Vehicles
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BHP reaffirmed its commitment to lower-emission steelmaking through steel decarbonisation trials and technology partnerships. The company is working with 13 steelmakers that together accounted for one quarter of global steel production in 2025.
Why it matters
Steel is a major source of industrial emissions, and the industry is pursuing several technology pathways because infrastructure, energy supply and raw material availability differ by region. Project economics remain pressured by high capital costs, limited access to competitively priced energy and hydrogen, and weaker demand for lower-emissions steel.
BHP's partner steelmakers accounted for one quarter of global steel production in 2025, and reported steel decarbonisation commitments totalled US$24 billion in the 12 months to April 2026. Early results remain limited, with hydrogen gas injection at Zenith Steel achieving a 2-3 per cent emissions reduction so far.
The players
BHP
BHP is a global mining company whose iron ore and steelmaking partnerships are central to its decarbonisation efforts.
POSCO
POSCO is a South Korean steelmaker that is expanding its partnership with BHP to advance the HyREX hydrogen-based ironmaking technology.
The details
BHP is testing technologies aimed at reducing emissions from existing steelmaking operations and supporting near-zero emissions steelmaking. Its NeoSmelt demonstration plant in Kwinana, Perth, has completed design, and more than 100 electric smelting furnace tests since 2022 have produced over two tonnes of hot metal, while carbon capture testing with ArcelorMittal and HBIS achieved capture rates above 90 per cent.
Timeline
- The 12-month period to April 2026 saw US$24 billion in reported steel decarbonisation commitments.
- HyREX demonstration trials using BHP iron ores are planned for 2028 at POSCO's plant in Pohang, South Korea.
- NeoSmelt commissioning is expected in 2029, subject to a final investment decision.
Roadmap
BHP's steel decarbonisation work follows the HyREX hydrogen-based ironmaking program that POSCO is developing in South Korea. Its expanded partnership with POSCO and planned 2028 trials at the Pohang plant position the effort within the wider push to cut emissions from the steel sector, where multiple technology pathways are being pursued.
The steel decarbonisation pathways being tested could eventually lower emissions in materials used across manufacturing, including automotive supply chains. The timelines for commercial deployment remain uncertain, so the near-term effect on consumers is limited.
The takeaway
Steel decarbonisation is advancing through several parallel technologies rather than a single solution. Progress will depend on whether project economics, energy access and policy support improve enough to move trials into commercial operation.
What happens next
NeoSmelt commissioning is expected in 2029, subject to a final investment decision, and HyREX demonstration trials are planned for 2028 in Pohang, South Korea.
Further reading
For more on the technologies shaping cleaner industrial production, browse Electric Vehicles coverage.
Source note: This article includes information reported by Australian Mining.
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