PERTH (miningweekly.com) – Mining major BHP has inked a memorandum of understanding (MoU) with Chinese steelmaker and customer, HBIS Group, to jointly study and explore greenhouse gas (GHG) emissions reduction technologies and pathways.
The two companies will invest up to $15-million over the next three years over this joint study.
BHP on Monday said that under the partnership, the two companies 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 toward 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. 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,” said BHP’s chief commercial officer, Vandita Pant.
BHP’s investment will be drawn from its $400-million Climate Investment Programme, which was 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,” BHP CEO Mike Henry said.
“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.”
BHP in February signed a similar MoU with Japanese steel producer JFE Steel to jointly study technologies and pathways to reduce GHG emissions, with the miner also stating that it would invest up to $15-million over a three-year period under the JFE partnership.
In November of last year, BHP inked an MoU with steel producer China Baowu, under which the two companies would invest up to $35-million and share technical knowledge to help address the challenge of reducing GHG emissions facing the global steel industry.
Chairperson of the World Steel Association, Party Secretary and chairperson of HBIS Group, Yu Yong, said the signing of the MoU with BHP fully demonstrated the two companies’ commitment to creating a green and low-carbon future across the value chain and a shared sense of responsibility to address climate change together, with a common vision of “contributing to a community of a shared future for mankind”.
“This partnership ushers in a new chapter for the two companies to deepen our strategic cooperation and to achieve collaborative development,” he added.