Posco and BHP partner to test hydrogen
Posco and BHP will test Australian iron ore for the HyREX hydrogen reduction process, aiming for commercialization by 2030.
South Korea's Posco and Australia's BHP have signed a deal to advance Posco's HyREX hydrogen reduction ironmaking technology. The collaboration, following a memorandum of understanding from October 2025, will involve testing BHP's Australian fine iron ores for their suitability in the HyREX process.
HyREX is designed to replace coal-based blast furnace steelmaking. It uses hydrogen and electricity from renewable sources to cut carbon dioxide emissions. The process combines hydrogen-based direct reduced iron (DRI) production using fluidized bed reactors with an electric smelting furnace.
Unlike many processes, HyREX is built to use fine iron ore directly, not processed pellets. Heated hydrogen passes through fluidized bed reactors, suspending fine ore particles and removing oxygen. This reaction produces DRI and water vapor. The DRI is then melted in an electric smelting furnace, which can handle lower- and medium-grade ores.
Testing for Commercialization
Under the agreement, Posco and BHP will test the performance of BHP's iron ores in fluidized bed reactors. This testing is a key part of Posco's plan to commercialize the HyREX technology by 2030. A Posco statement said the work aims to "verify the performance of HyREX technology in various raw material environments" and "strengthen the foundation for technology commercialization."
European Hydrogen Funding and Projects
In Spain, the Valencian government has approved 76 million euros ($88.1 million) in direct grants for two BP-led projects. The majority of the funding, 66.31 million euros, is for Castellón Green Hydrogen Phase 2, a large-scale renewable hydrogen demonstration. BP Energía España receives 9.7 million euros for a demonstration of advanced pretreatment technologies for sustainable biofuels.
The grants will be distributed over four years, from 2026 to 2029.
| Year | Funding Amount (million €) |
|---|---|
| 2026 | 4.36 |
| 2027 | 27.80 |
| 2028 | 34.07 |
| 2029 | 9.78 |
German Pipeline Construction Begins
Construction has started on the German section of the mosaHYc cross-border hydrogen pipeline network. French operator NaTran and Germany's Creos Deutschland are building the roughly 17-kilometer pipeline between Leidingen and Dillingen in Saarland. Creos Deutschland stated that following final planning approval, pipe and civil engineering work can now begin, with construction expected to take about 18 months.
Uniper Advances Import Terminal Plans
German energy company Uniper has completed the expressions of interest phase for a planned hydrogen import terminal in Wilhelmshaven. The company said the process confirmed market interest in the project. The terminal's modular design would allow an initial import capacity that could be expanded to a maximum annual throughput of 2.6 million metric tons of ammonia, equivalent to roughly 350,000 metric tons of hydrogen. Uniper said it could launch additional open seasons if market demand supports expansion and will now advance development, permitting, and commercialization activities.
