BHP and POSCO Partner to Promote Hydrogen-Driven Low Emissions Iron Production

Written by Emily J. Thompson, Senior Investment Analyst

Source: Reuters

Updated: Oct 30 2025

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Source: Reuters

BHP and POSCO Collaboration: BHP, the world's largest miner, and South Korean steelmaker POSCO have signed an agreement to produce "near zero emissions" iron, a significant advancement in green steel manufacturing.
Production Details: The iron will be produced at a demonstration plant in Pohang, South Korea, using a hydrogen-based process and electric smelting furnace, with construction starting soon and commissioning expected by early 2028.
Environmental Impact: Traditional steel production via blast furnaces generates approximately 2.3 tons of CO2 per ton of steel, while the new method aims to reduce emissions to 0.4 tons or less, addressing the steel sector's contribution to global emissions.
Challenges for Australian Iron Ore: Australia's lower-grade iron ore may require additional processing to be competitive in green steel production compared to higher-grade ores from Brazil, which could impact its viability in a low-carbon future.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.