BHP Group (ASX:BHP) and state-owned China Baowu Steel Group have renewed their steel decarbonisation partnership under a five-year memorandum of understanding (MoU).
The companies will continue researching lower-emissions steelmaking technologies using BHP’s Pilbara iron ore, extending a partnership established in 2020.
Under the MoU, one area of work will involve modified blast furnace technologies. The companies are targeting a demonstration of carbon dioxide emissions intensity at least 30% below conventional blast furnace operations.
BHP says the reduction could exceed 80% if carbon storage and renewable energy are available. These outcomes remain subject to the technologies being successfully demonstrated.
The partnership will also continue direct reduced iron trials using Pilbara ore, followed by processing through China Baowu’s planned demonstration-scale electric smelting furnace.
Previous work included trials at China Baowu’s one-million-tonne-per-annum hydrogen-based direct reduced iron furnace. According to BHP, the resulting iron had half the carbon dioxide intensity of metal produced through a conventional blast furnace.
The material was subsequently used in pilot-scale electric smelting furnace tests. BHP says the pathway demonstrated the potential to produce steel at the International Energy Agency’s near-zero emissions threshold of 0.4 tonnes of carbon dioxide equivalent per tonne of crude steel.
The companies also established the China Baowu–Monash University–BHP Industry Knowledge Centre for Low Carbon Metallurgy in 2024, supporting research projects in Australia and China.
BHP has not disclosed the financial commitment attached to the renewed agreement or a timetable for commercial deployment.
BHP Group is an Australian resources company with iron ore, copper, steelmaking coal, and potash development interests. China Baowu Steel Group is a Chinese state-owned steel producer.
Write to France Pinzon at Mining.com.au
Images: BHP Group
