BHP to partner with China Baowu on low-emission steelmaking
BHP has announced that it has signed a memorandum of understanding (MOU) with world-leading steel producer China Baowu, with the intention to invest up to US$35 million and share technical knowledge to help address the challenge of reducing greenhouse gas emissions facing the global steel industry.
The five-year partnership will focus on the development of low-carbon technologies and pathways capable of emission intensity reduction in integrated steelmaking. Under the MOU, the deployment of carbon capture, utilisation and storage in the steel sector will also be investigated at one of China Baowu’s production bases.
BHP’s investment will be funded under the US$400 million Climate Investment Program, set up last year to coordinate and prioritise projects, partnerships, R&D and venture investments to reduce Scope 1, 2 and 3 emissions, offsets and support development of technologies with the highest potential to impact change.
BHP Chief Executive Officer Mike Henry said the companies would collaborate on technical solutions to utilise low-carbon fuel sources such as hydrogen injection in the blast furnace, and explore other low-emission options in support of China Baowu and the steel industry’s low carbon transformation and green development goals.
“This MOU further strengthens our longstanding relationship with China Baowu and reflects our joint determination and commitment to help reduce emissions in line with the Paris Agreement goals,” he said. “BHP will invest in supporting the development of low emissions technologies, promote product stewardship and partner with others to enhance the global policy and market response to climate change. Our investments are focused on actions that can create real change in emissions.”
Last month BHP awarded a tender for the world’s first LNG-fuelled bulk carrier, Newcastlemax, to carry iron ore between Western Australia and China, which will reduce emissions by more than 30% per voyage.
In October 2019, China Baowu announced the establishment of a Low Carbon Metallurgy Innovation Centre and plans to establish a Global Low Carbon Metallurgy Innovation Alliance.
China Baowu Chairman Chen Derong said the MOU with BHP will further enhance and broaden the existing strategic partnership between the companies and establish a model of joint industrial efforts to promote technological innovation and a sustainable transition to a lower carbon world.
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