BHP has come together with China steelmaker HBIS Group, one of the miner’s major customers, for a multi-year collaboration on technology to mitigate greenhouse gas emissions.
Under the terms of a new memorandum of understanding (MoU), BHP said it will invest US$15 million over three years to jointly study three priority areas for emissions reduction: 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.
Both companies have climate change goals that they want to advance under the partnership, while also supporting mining’s role in helping China achieve carbon neutrality 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 Chief Commercial Officer Vandita Pant.
BHP Chief Executive Officer Mike Henry, which added that the company’s investment will be drawn from the BHP Climate Investment Program that it formed in 2019, said it is glad to establish the strategic partnership.
“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,” he noted.