BHP and China’s HBIS Group will invest up to US$15 million over three years to jointly study and explore greenhouse gas emissions reduction technologies and pathways.
HBIS is one of the world’s largest steelmakers and a major customer of BHP’s iron ore. Under the agreement, the two parties will 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.
BHP’s Chief Commercial Officer, Vandita Pant, said 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,” Ms Pant said.
“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.”
Chairman of HBIS Group, Yu Yong, said the agreement demonstrates 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.
“This partnership ushers in a new chapter for the two companies to deepen our strategic cooperation and to achieve collaborative development,” Mr Yong added.
According to BHP’s statement, its investment would be drawn from its US$400 million Climate Investment Program established in 2019 to support projects, partnerships, research and development to help reduce Scope 1, 2 and 3 emissions.
