BHP has reaffirmed its commitment to lower-emission steelmaking, with the company highlighting progress across industrial trials and technology partnerships, despite global investment in steel decarbonisation facing mounting economic challenges.
In an update on its steel decarbonisation program, BHP said it was working with 13 of the world’s largest steelmakers, which accounted for one quarter of global steel production in 2025, to test technologies aimed at reducing emissions from existing operations and supporting near-zero emissions steelmaking.
The update comes as reported investment and funding commitments in steel decarbonisation totalled US$24 billion in the 12 months to April 2026, according to BHP.
However, the company said high capital costs, limited access to competitively priced energy and hydrogen, and weaker demand for lower-emissions steel are putting pressure on project economics.
BHP said the industry would need multiple technology pathways to account for differences in regional infrastructure, energy supplies and raw material availability.
One area of progress is its expanded partnership with POSCO to advance HyREX, a hydrogen-based ironmaking technology capable of directly processing fine iron ore. Demonstration plant trials using BHP iron ores are planned for 2028 at POSCO’s 300,000-tonne HyREX plant in Pohang, South Korea.
In Australia, the design phase has been completed for NeoSmelt, a planned demonstration-scale direct reduced iron and electric smelting furnace pilot plant in Kwinana, Perth. The project brings together joint venture partners AMB Holdings, BHP, BlueScope, Mitsui Iron Ore Development, Rio Tinto and Woodside, with commissioning expected in 2029, subject to a final investment decision.
BHP also reported progress in electric smelting furnace trials, with more than 100 tests since 2022 producing more than two tonnes of hot metal. The work has examined the use of Pilbara iron ore in the process.
Other trials include hydrogen-rich gas injection at Zenith Steel in China, which has achieved a 2–3 per cent emissions reduction so far, and carbon capture testing with ArcelorMittal and HBIS. The latter demonstrated operating times and carbon dioxide capture rates above 90 per cent.
BHP said the pace of steel decarbonisation was becoming more measured as economics, infrastructure and policy shaped which technologies could be deployed.
The company said its program would continue to support emissions reductions across existing steelmaking processes while developing technologies for near-zero emissions production.