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BHP has signed a MoU with one of the world’s largest steelmakers and a major customer of BHP’s iron ore China’s HBIS Group Co Ltd with the intention of investing up to USD 15 million over three years to jointly study and explore greenhouse gas emissions reduction technologies and pathways. Under the partnership, BHP and HBIS Group 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 iron making 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.
BHP’s Chief Commercial Officer Ms Vandita Pant said “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.”
BHP’s investment would be drawn from its USD 400 million Climate Investment Program established in 2019 to support projects, partnerships, research and development to help reduce Scope 1, 2 and 3 emissions.
The MoU with HBIS Group follows recent partnerships established with major steelmakers China Baowu and JFE to explore emissions reduction from steelmaking. BHP has been active in other areas to reduce emissions, including awarding the world’s first LNG-fuelled Newcastlemax bulk carrier tender and the first LNG supply agreement for those vessels, and renewable energy supply contracts for BHP’s Queensland coal mines and Nickel West operations.