Cleaner Steel Trials Advance Toward 2028 Pilots
Households buying cars and appliances should expect cleaner steel to reach products gradually as pilot plants move toward commercial operation.
Updated on Nov. 4, 2026 in Electric Vehicles
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BHP reaffirmed its commitment to lower-emission steelmaking through steel decarbonisation trials and technology partnerships, working with 13 of the world's largest steelmakers that together produced one quarter of global steel in 2025. Investment and funding commitments in steel decarbonisation totalled US$24 billion in the 12 months to April 2026.
Why it matters
For households tracking the costs and supply chains behind everyday goods, steel decarbonisation affects how the metal in cars, appliances and building materials may be produced over the coming decade. High capital costs, limited access to competitively priced energy and hydrogen, and weaker demand for lower-emissions steel are currently pressuring project economics, so the pace of change will be measured.
BHP is working with 13 steelmakers that together produced one quarter of global steel in 2025. Its carbon capture tests with ArcelorMittal and HBIS achieved capture rates above 90 per cent, while hydrogen gas injection at Zenith Steel in China has so far delivered a 2-3 per cent emissions reduction.
The players
BHP
A global mining company whose iron ore supplies steelmakers worldwide and which is leading the steel decarbonisation trials.
POSCO
A major South Korean steelmaker that is partnering with BHP on the HyREX hydrogen-based ironmaking technology.
ArcelorMittal
One of the world's largest steelmakers, which tested carbon capture with BHP and reported capture rates above 90 per cent.
The details
BHP is testing technologies aimed at reducing emissions from existing steelmaking operations and supporting near-zero emissions steelmaking. The NeoSmelt project brings together joint venture partners AMB Holdings, BHP, BlueScope, Mitsui Iron Ore Development, Rio Tinto and Woodside, with a demonstration-scale pilot plant in Kwinana, Perth that has completed its design phase. BHP has also expanded its partnership with POSCO to advance HyREX, a hydrogen-based ironmaking technology, with demonstration trials planned at POSCO's 300,000-tonne plant in Pohang, South Korea.
Timeline
2025: The 13 partner steelmakers accounted for one quarter of global steel production.
12 months to April 2026: Steel decarbonisation investment commitments totalled US$24 billion.
2028: Planned HyREX demonstration trials at POSCO's Pohang plant in South Korea.
2029: Expected NeoSmelt commissioning in Kwinana, subject to a final investment decision.
The Home Front
Steel is central to the vehicles and appliances that fill household budgets, so the cost and carbon profile of its production feeds into eventual retail prices. The steel decarbonisation effort shows that multiple technology pathways are being pursued in parallel because regional energy supplies and raw material availability differ.
If you are planning a purchase of a car or major appliance in the coming years, the origin and production method of its steel may become a factor in the total cost and carbon footprint you compare. Ask manufacturers whether their steel sourcing includes lower-emission production, and budget with the understanding that these technologies are still in trial stage.
The takeaway
Steel decarbonisation is advancing through many parallel trials rather than a single solution, and the timelines for commercial plants run into 2028 and 2029. Keep an eye on those milestones when comparing future vehicles and appliances, since they will shape how cleaner steel reaches store shelves.
What happens next
The Pohang HyREX demonstration trials are planned for 2028, and NeoSmelt commissioning is expected in 2029, subject to a final investment decision.
Further reading
For context on how cleaner materials are reshaping the vehicles on the road, see Electric Vehicles.
Source note: This article includes information reported by Australian Mining.
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