BHP, JFE Steel announce emissions reduction collaboration

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BHP and Japanese steel producer, JFE Steel, have signed a memorandum of understanding (MOU) to jointly study technologies and pathways capable of making material reductions to greenhouse gas emissions from the integrated steelmaking process.

The five-year partnership, which builds on the strong history of technical research and collaboration between the two companies, will see BHP invest up to A$20 million through its A$517 million Climate Investment Program, established in 2019.

BHP said the partnership will focus on the role of Australian raw materials to help to increase efficiency and reduce emissions from the blast furnace and direct reduced iron (DRI) steel making routes.

It will study the properties of raw materials, with focus on specific areas such as iron ore pretreatment, use of enhanced iron ore lump, high quality coke and DRI, required to decrease iron and steelmaking emissions and support a transition to a low carbon future.


BHP’s Chief Commercial Officer, Vandita Pant, said: “This partnership with JFE demonstrates a joint commitment to make our activities more sustainable through collaboration and technological improvement. This work will support and help progress Japan’s carbon neutral ambitions by 2050.”

“As outlined in BHP’s decarbonisation framework the steel industry is expected to move through stages of optimisation and transition for the existing integrated steelmaking route before reaching an end state of low or no carbon intensity.

“Our investments are focused on actions that can create real change, and we continue to take positive steps on our climate agenda and in collaborating with others to help reduce emissions in line with the Paris Agreement goals,” Ms Pant concluded.

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