Bhp, the global iron ore giant, and China’s Hbis, a major steelmaker, will explore ways to reduce emission in the steelmaking process, including hydrogen.
Both partners signed a memorandum of understanding (MoU) to collaborate for the next three years. With Bhp plans to invest US$ 15 million, they will study hydrogen-based reduction technology, recycling slag (waste produced during steelmaking), and the utilisation of iron ore lump to reduce emissions.
The MoU will help both companies in achieving their goals of climate change. It will also help in china’s vision to become carbon neutral by 2060.
BHP’s Chief Commercial Officer, Vandita 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.”
The MoU is part of the BHP’s US$ 400 million Climate Investment Program, established in 2019. Bhp also made partnerships with JFE and China Baowu separately to reduce emissions from steel and iron making processes. In 2020, Bhp announced its Bhp Nickel West Green Hydrogen project, which includes developing a 10 MW hydrogen electrolyser at the Nickel Refinery in Kwinana, Australia. In 2019 Hbis also announced to build a hydrogen-based steel making facility with a production capacity of around 1.2 million tonnes/year.