South Korea's Posco has signed a Memorandum of Understanding with Primetals Technologies to develop a HyREX demonstration plant aimed at producing hydrogen-based hot metal. This innovative technology utilizes hydrogen to convert fine iron ore into Direct Reduced Iron (DRI), which is then melted in an electric smelting furnace, thereby eliminating the need for traditional coal-based reduction method.
The collaboration is part of Posco's strategy to achieve carbon neutrality by 2050, with plans to transition from blast furnaces to hydrogen reduction processes. The HyREX plant is expected to enhance production efficiency and significantly reduce CO2 emissions by bypassing the pelletizing process typically required in conventional steelmaking.
Posco aims to establish a test facility capable of producing one million tons annually by 2028, with plans for commercial production by 2030. This initiative reflects Posco's commitment to sustainable steel production and its ongoing efforts to innovate within the industry.
