BHP advances multiple pathways toward near‑zero steelmaking

Investment and policy context

Reported investment and funding commitments reached US$24 billion for the 12 months to April 2026, despite higher capital costs and constrained access to competitively priced energy and hydrogen. Policy measures across regions — including China’s ETS expansion and dual carbon controls, India’s Green Steel Roadmap and CCUS planning, Japan’s GX Steel framework and Korea’s support for hydrogen ironmaking — are strengthening incentives for lower‑emissions steel and shaping where projects can be economic.

Technology pathways

No single technology will suit the global steel fleet. The industry is developing multiple routes: incremental and retrofit options for existing blast furnaces (efficiency gains up to ~20% and deeper cuts of ~80% with top‑gas recycling plus CCUS); DRI–ESF based on renewable hydrogen and electricity with an estimated ~85% reduction potential; and electrochemical reduction, early in development, which could reduce emissions intensity by up to ~95%.

BHP program progress

BHP is running practical trials with steelmakers and research partners. Highlights include hydrogen injection trials (Zenith: 2–3% reductions so far), pilot CCUS capture tests with ArcelorMittal and HBIS demonstrating >90% operating time and capture rates, a CCUS hub study completed April 2026 identifying five potential locations, Nantong pellet trials in December 2025 exceeding targets using Pilbara ore, ESF pilot milestones including >100 trials and >2 tonnes hot metal, NeoSmelt demonstrator design complete for potential CY2029 commissioning, POSCO HyREX demonstrations planned for CY2028, and Electra’s 1,400‑hour continuous ER pilot with a larger demo planned later in CY2026.

Outlook

Progress is real but measured: economics, infrastructure and policy will determine which pathways scale where and when, reinforcing the need for multiple technology options, enabling systems and sustained industry collaboration.