Tag Archives: net zero

BHP and POSCO to collaborate on low-carbon steelmaking technologies

BHP and South Korea’s POSCO have announced a Memorandum of Understanding (MoU) to jointly explore greenhouse gas emissions reduction technologies in integrated steelmaking.

As part of the MoU, the parties intend to undertake pilot and plant trials to lower carbon in the steelmaking process, including optimising coke quality and assessing carbon capture storage and utilisation (CCUS) options to lower carbon intensity in the blast furnace.

POSCO and BHP also intend to share research on hydrogen-based direct reduction technology, the use of biomass in steelmaking, as well as the potential to leverage BHP’s carbon offsetting capabilities in the development of carbon neutral steel products.

BHP intends to invest up to $10 million over the next five years under the MoU, with the opportunity to increase investment in technologies under the trial. BHP’s investment will be drawn from its $400 million Climate Investment Program, announced in 2019 to support projects, partnerships, research and development to help reduce Scope 1, 2 and 3 emissions.

BHP and POSCO also intend to collaborate on the reporting of carbon emissions through the steel value chain to further progress consistent, transparent and robust global standards.

BHP Chief Commercial Officer, Vandita Pant, said: “The pathway to net zero for steelmaking is not yet clear but we believe that, by working with industry leaders like POSCO, together we will find solutions more quickly to help reduce carbon emissions in steelmaking and along the value chain. BHP recently announced a goal to pursue net zero Scope 3 emissions by 2050 and we are committed to working with industry leaders in steelmaking to address this hard-to-abate sector.

“Steel is a critical product for the world to grow and decarbonise, and we must work hard together to enable greener steel, reducing carbon intensity in the blast furnace and testing new technologies for steel production.”

POSCO’s Head of Steel Business Unit, Hag-Dong Kim, said: “Though achieving carbon neutrality is a difficult path ahead, with POSCO working together with BHP’s outstanding mining expertise and the will to achieve a low-carbon future, I have every reason to believe that we can create a significant turning point in carbon emission reduction across our value chain.”

The MoU with POSCO follows BHP’s earlier partnerships established with major steelmakers China Baowu, JFE Steel and HBIS Group to explore emissions reduction from steelmaking. The combined output of the four steel companies equates to around 12% of reported global steel production.

Fortescue issues ‘industry-leading’ Scope 3 emissions targets

Fortescue Metals Group has announced what it says is an industry-leading target to achieve net zero Scope 3 emissions by 2040, addressing emissions across Fortescue’s entire global value chain, including crude steel manufacturing which accounts for 98% of the company’s Scope 3 emissions.

Fortescue’s approach to reducing Scope 3 emissions is to develop projects and technologies with a focus on reducing emissions from iron and steel making and to work with current and prospective customers on the application of the technology and the supply of green hydrogen and ammonia from Fortescue Future Industries (FFI). Fortescue will also prioritise the decarbonisation of its own fleet of eight ore carriers and engage with shipping partners to reduce, and aiming to eliminate, emissions from shipping.

FFI is targeting the production of 15 Mt of green hydrogen annually by 2030, which will underpin opportunities to work with customers and shipping partners on emissions reduction and elimination projects.

In addition to the long-term goal to achieve net zero Scope 3 emissions by 2040, the following medium-term targets have been set:

  • Enable a reduction in emissions intensity levels from the shipping of Fortescue’s ores by 50% by 2030 from financial year (FY) 2021 levels; and
  • Enable a reduction in emissions intensity levels from steel making by Fortescue’s customers of 7.5% by 2030 from FY21 levels, to 100% by 2040.

Fortescue Chief Executive Officer, Elizabeth Gaines, said: “Climate change is the most pressing issue of our generation and at Fortescue, setting stretch targets is at the core of our culture and values and we are proud to set this goal to tackle emissions across our value chain.

“Fortescue has commenced its transition from a pure play iron ore producer to a green renewables and resources company, underpinned by the world’s first major carbon emission heavy industry operation to set a target to achieve carbon neutrality by 2030. This Scope 3 target is consistent with this transition and complements our targets for Scope 1 and 2 emissions reduction.

“Collaboration is integral to driving the rapid transition to green energy, and we remain committed to actively engaging with our customers, suppliers and other key industry participants to facilitate the reduction of emissions. This includes the development of technologies and the supply of green hydrogen and ammonia through FFI, which will provide significant opportunities for the steel, cement and land and sea transport industries to decarbonise.”

To achieve the target, Fortescue and FFI are focused on accelerating a number of key initiatives:

  • Conversion of existing maritime vessels, including Fortescue’s fleet of ore carriers, to be fuelled by green ammonia;
  • Supporting the adoption of green ammonia in new vessel construction;
  • Pursuing opportunities for emissions reduction and elimination in iron and steel making, facilitated by the use of renewable energy and green hydrogen; and
  • Research and development work to produce green iron and cement from Fortescue ores at low temperatures without coal.

FFI Chief Executive Officer, Julie Shuttleworth, said: “Our investments in technologies and research and development are focused on demonstrating that the production of iron ore, cement, iron and steel can operate with renewable energy.

“Our work to decarbonise Fortescue’s iron ore operations will position Fortescue as the first major supplier of green iron ore in the world, paving the way for production of green iron and a new green steel industry.”

Aggreko commits to ‘net zero’ targets, supporting customers through energy transition

Aggreko has announced its ambition to be “net zero” by 2050 or sooner, aligning with the Paris Agreement to limit global warming to 1.5°C.

The company, which has delivered many off-grid power solutions to the mining sector, a number of which have renewable energy inputs, has also committed to offering cleaner technologies and fuels to support its customers through their energy transition – using flexible and competitive energy solutions to meet their environmental sustainability targets.

By 2030, Aggreko says it will:

  • Reduce the amount of fossil diesel fuel used in customer solutions by at least 50% by offering customers cleaner technologies and fuels that guarantee the same or better level of reliability and competitiveness;
  • Reduce local air quality emissions of their solutions also by 50% (all emissions from diesel, gas and other fuels); and
  • Achieve net zero across all its own business operations.

By 2050 or sooner, it says it will also be a “net zero” business across all the services it provides.

The company explained: “For a number of years, Aggreko has been making progress in providing cleaner solutions for customers around the world, such as turning waste gas into power or by incorporating battery storage, solar, and more efficient and near zero local emissions generators. Aggreko is pioneering by partnering with many leading organisations across industry sectors that aim to be net zero or close to net zero within the next decade, supporting them in navigating the complexity and the cost challenges they face in achieving their own commitments.”

To achieve its 2030 and 2050 ambitions, Aggreko plans to accelerate investment in lower-carbon technologies and will continue to shift its global generator fleet towards more gas and greener drop-in liquid fuels. It will also invest in other clean energy alternatives such as e-fuels, hydrogen-ready engines and fuel cells, in preparation for rapid exploitation as the technology becomes available at scale, while also closely monitoring and investigating future technologies, the company said.

Aggreko is to accelerate its offering of more efficient solutions notably through temperature control, energy recovery, co- or tri-generation, it said. Simultaneously, it will continue to grow its portfolio of mobile and modular solar power and battery storage assets, which, when combined with its generator fleet, helps customers to successfully reduce their carbon emissions and costs.

“Aggreko will continue to enhance the use of connected systems, remote monitoring and data analytics to increase efficiency and track performance against its own and its customers’ emissions reduction targets,” the company said.

Chris Weston, CEO of Aggreko, said: “The energy transition is fundamentally changing the way power is generated and delivered. Our customers’ needs are evolving – they require cleaner solutions but without compromising reliability, modularity or cost efficiency. We’ve already begun transforming our fleet and solutions to meet changing customer needs and to achieve our objective to become a net zero company.”

He added: “Our customers are looking to reduce their carbon and air quality emissions and we are the perfect partner to support them in their journey. With our expertise in hybrid solutions and efficient thermal generation, we are already supporting them across the world through the energy transition.”

He concluded: “Our industry-leading net zero commitments are ambitious but achievable and put us on the path to reduce both our own environmental footprint and that of our customers as we look ahead to a greener future.”