BHP signs MoU with HBIS to mitigate steel industry emissions
BHP has announced that it has signed a memorandum of understanding (MoU) with China’s HBIS Group (HBIS) with the intention of investing up to US$15 million over three years to jointly study and explore greenhouse gas emissions reduction technologies and pathways.
HBIS is one of the world’s largest steelmakers and a major customer of BHP’s iron ore. Under the partnership, BHP and HBIS intend to collaborate on three priority areas: hydrogen-based direct reduction technology; the recycling and reuse of steelmaking slag; and the role of iron ore lump utilisation to help reduce emissions from ironmaking and steelmaking.
The partnership aims to help both companies progress towards their climate change goals, and support the steel industry’s role in helping to achieve China’s ambitions to be carbon neutral by 2060.
“We view decarbonisation of the steel industry as a complex puzzle that requires multiple technological solutions across the value chain over different time horizons,” said Vandita Pant, BHP’s Chief Commercial Officer. “By forming this third low-carbon steelmaking partnership with HBIS Group, we are focusing on additional components, such as the role our products play in hydrogen-based steel production, that complement our other partnerships and support for endeavours in emissions reduction and capture from the traditional blast furnace route.”
BHP’s investment would be drawn from its US$400 million Climate Investment Program, established in 2019 to support projects, partnerships, research and development to help reduce Scope 1, 2 and 3 emissions.
“BHP has a long and trusted relationship with HBIS Group, and we are pleased to establish this strategic partnership to explore new ways to reduce emissions from steelmaking,” said BHP Chief Executive Officer Mike Henry. “Global decarbonisation will require collaboration and collective effort, and our work with partners such as HBIS Group will build on our own actions and help reduce emissions right through the value chain.”
The MoU with HBIS Group follows recent partnerships established with major steelmakers China Baowu and JFE to explore emissions reduction from steelmaking.
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