Tag Archives: Paris Agreement

BHP, JFE Steel to scrutinise Australian steel raw materials emissions in latest study

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

BHP is prepared to invest up to $15 million over the five-year partnership, which, it says, builds on the strong history of technical research and collaboration between the two companies.

The company’s investment will be funded under its $400 million Climate Investment Program, set up in 2019 to coordinate and prioritise projects, partnerships, R&D and venture investments to reduce Scope 1, 2 and 3 emissions, invest in offsets and support development of technologies with the highest potential to impact change.

The JFE-BHP 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) steelmaking routes, it said. The partnership intends to study the properties of raw materials, with focus on specific areas such as iron ore pre-treatment, 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. Throughout the collaboration, the two companies will also share knowledge on reducing carbon emissions across the steel value chain.

This JFE-BHP partnership follows other BHP investments to support the reduction of value chain emissions, including up to $35 million for the collaboration with China’s largest steelmaker, China Baowu, and awarding BHP’s first LNG-fuelled Newcastlemax bulk carriers contract, with the aim to reduce CO2-e emissions by 30% per voyage.

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,” Pant said.

JFE’s President and Chief Executive Officer, Yoshihisa Kitano, said: “We understand that raw material processing technology is extremely important in the research and development towards carbon neutrality. We have a long history working closely together with BHP collaborating to study raw material utilisation technology and mine development. It is very significant for us to be able to work together with BHP towards reduction of CO2 emissions, which is an extremely important agenda for the steel making sector.”

Newmont aims for net zero carbon emissions by 2030

Newmont has announced what, it says, are “industry-leading climate targets” to reduce its greenhouse gas (GHG) emissions by 30%, with an ultimate goal of achieving net zero carbon emissions by 2050.

The new 2030 target builds upon Newmont’s existing GHG emissions reductions target of 16.5% over five years, concluding in 2020.

“At Newmont, we hold ourselves to high standards – from the way in which we govern our business, to how we manage relationships with our stakeholders, to our environmental stewardship and safety practices,” Tom Palmer, President and CEO of Newmont, said. “We fundamentally understand the human contribution to climate change and understand we reap what we sow. It is our responsibility to take care of the resources provided to us.

“We take these climate change commitments seriously, and make them because our relationship with the planet is absolute. We want a world that is not just sustainable, but thriving for generations to come.”

Using science-based criteria, Newmont has set climate targets for 2021-2030 for its operating sites, including a renewable energy target. The science-based criteria align with Science-Based Targets Initiative criteria and assists Newmont in developing specific emissions reduction pathways and meeting the Paris Agreement objective of being well below 2°C global temperature change, the miner says.

To achieve these aims, the company will implement a new energy and climate investment standard, to be combined with its existing investment standards including shadow carbon pricing, in order to further inform its capital investment process, it said.

“This new investment standard will ensure that the 2030 reduction targets are embedded into investment decisions for projects such as fleet vehicles, production equipment, on-site renewable power generation and energy efficiency,” the company said. “Additionally, the company will engage its partners and joint ventures in an effort to align joint venture operations targets and supply chain related emissions with Newmont’s targets.”

Mining is an energy intensive business, with 88% of Newmont’s energy used for mining and milling generated from carbon-based fuels, it said. As the company looks to reduce emissions and move to a low carbon economy, it will use a strategic approach to portfolio development, energy sourcing, fleet and equipment investment, as well as land use planning to achieve its targets.

A key part of Newmont’s accountability in reaching these targets will be reporting via The Climate-Related Financial Disclosures (TCFD) guidelines. In 2021, the company will issue its first annual TCFD report. The TCFD report will detail Newmont’s governance, strategy and portfolio resilience to a range of climate scenarios. The TCFD report will also track Newmont’s annual progress toward implementing its 2030 strategy, meeting its 2030 targets and executing emissions reduction projects across its global portfolio.

BHP weighs trolley assist and IPCC as part of decarbonisation efforts

BHP has provided an update on its progress on climate action, new climate commitments and how it integrates climate change into corporate strategy and portfolio decisions in a new report.

The company’s climate change approach focuses on reducing operational greenhouse gas emissions, investing in low emissions technologies, promoting product stewardship, managing climate-related risk and opportunity, and partnering with others to enhance the global policy and market response, it says.

“BHP supports the aim of the Paris Agreement to limit global warming to well below 2°C above pre-industrial levels, and pursue efforts to limit warming to 1.5°C,” the company clarified.

It explained: “BHP has been active in addressing climate risks for more than two decades, and has already established its long-term goal of achieving net zero operational (Scope 1 and 2) emissions by 2050 and its short-term target of maintaining operational emissions at or below financial year (FY) 2017 levels by FY2022, using carbon offsets as required.”

In the past year, BHP has made progress on this aim, announcing that the Escondida and Spence copper mines in Chile will move to 100% renewable energy by the mid-2020s, and, last week, awarding new renewable energy contracts for its Queensland coal assets, and the world’s first LNG-fuelled Newcastlemax bulk carrier tender.

BHP’s climate change briefing and 2020 climate change report outline how the company will accelerate its own actions and help others to do the same, it said. Today’s update sets out:

  • A medium-term target to reduce operational greenhouse gas emissions by at least 30% from adjusted FY2020 levels by FY2030;
  • Scope 3 actions to contribute to decarbonisation in its value chain. This includes supporting the steelmaking industry to develop technologies and pathways capable of 30% emissions intensity reduction with widespread adoption expected post-2030 and, in terms of transportation, supporting emissions intensity reduction of 40% in BHP-chartered shipping of products;
  • Strengthened linking of executive remuneration to delivery of BHP’s climate plan; and
  • Insight into the performance of BHP’s portfolio in a transition to a 1.5°C scenario.

The report also outlined some examples of emission reduction projects the miner is considering, which will be weighed as part of the maintenance capital category of its capital allocation framework. This includes solar power installations; alternative material movement technologies such as overland conveyors and in-pit crush and convey solutions; and trolley assist to displace diesel for haul trucks.

The company expanded on this in its report: “The path to electrification of mining equipment will likely include solutions such as trolley assist, in-pit crush and convey, overland conveyors and battery solutions.

“Diesel displacement represents a higher risk, higher capital step towards decarbonisation, so a phased approach to execution is proposed with particular emphasis on Minerals Americas-operated assets that are further advanced on the decarbonisation journey. Taking a transitional approach to electrification provides flexibility to allow for the potential for rapid development of emerging technologies and to resolve the complexities of integrating these technologies into existing operations.

“During FY2021, we will seek to collaborate further with International Council on Mining and Metals members, industry and original equipment manufacturers to progress research and development to reduce costs and assess any potential impacts from electrified mining equipment solutions to replace current diesel options.”

BHP Chief Executive Officer, Mike Henry, said of the report: “I’m pleased today to show how we are accelerating our own actions and helping others to do the same in addressing climate change. We see ourselves as accountable to take action. We recognise that our investors, our people and the communities and nations who host our operations or buy our products have increasing expectations of us – and are responsive to these.

“Our approach to climate change is defined by a number of key requirements. Our actions must be of substance. They must be real, tangible actions to drive emissions down. We must focus on what we can control inside our business, and work with others to help them reduce emissions from the things that they control. To create long-term value and returns over generations, we must continue to generate value and returns within the strong portfolio we have today, while shaping our portfolio over time to benefit from the megatrends playing out in the world including decarbonisation and electrification.

“Our portfolio is well positioned to support the transition to a lower carbon world aligned with the Paris Agreement. Our commodities are essential for global economic growth and the world’s ability to transition to and thrive in a low carbon future. Climate change action makes good economic sense for BHP and enables us to create further value.”

Epiroc looks to halve CO2 emissions from customers’ use of equipment

Epiroc has launched new sustainability goals for 2030 that, it says, further advance the group’s ambitions on issues such as climate change and diversity.

Sustainability is already integrated in Epiroc’s business operations and, this year, the group has established long-term sustainability goals that support the Paris Agreement and the UN 2030 Agenda for Sustainable Development, it said.

The new sustainability goals for the next decade include halving CO2 emissions from operations, transport and major suppliers, as well as from customers’ use of Epiroc equipment.

Helena Hedblom, Epiroc’s President and CEO, said: “Since the majority of the CO2 emissions occur in the use phase of our products, it is crucial that we not only limit our own emissions in operations and transport but also take on the greater challenge to reduce the emissions when the products are in use. We are working together with our customers to reduce the impact on climate.”

Epiroc says it is continuously innovating to make its equipment as climate-friendly and safe as possible.

Its new generation of battery-electric mining machines, which is generating strong interest from customers globally, is one example. Epiroc’s package of digital solutions, 6th Sense, including automation, also goes a long way to reduce customers’ environmental impact as well as to improve health and safety conditions, it added.

“With the new sustainability goals for 2030 we are taking our ambitions in this area to a new level,” Hedblom adds. “Epiroc is proud to help making the mining and infrastructure industries as sustainable as possible.”

Other examples of Epiroc’s new goals for 2030 include doubling the number of women in operational roles, substantially reducing work-related injuries, and further strengthening the group’s commitment to the company’s Code of Conduct.

Metso’s GHG targets recognised as ‘science-based’

Metso’s greenhouse gas (GHG) emission targets have won the approval of the Science Based Targets initiative (SBTi), demonstrating the mining equipment and service provider is doing its fair share in trying to achieve the global climate change goals as set out in the 2015 Paris Agreement.

The GHG targets are part of Metso’s Climate Program and, the company says, are applicable to all relevant emission sources: production, procurement, inbound and outbound transportation as well as the use of Metso’s products.

The SBTi is a collaboration between CDP, the United Nations Global Compact, World Resources Institute and the World Wide Fund for Nature. The initiative aims at promoting science-based target setting and driving down GHG emissions.

The initiative is tied to the 2015 Paris Agreement, which saw 195 of the world’s governments commit to prevent dangerous climate change by limiting global warming to below 2°C.

Metso says it is one of the few corporations in its field to join SBTi in the efforts to prevent global warming.

As a scope 1 and 2 GHG target, Metso has committed to a 25% reduction in carbon emissions in production by 2030. This is achievable by investing in renewable energy and improving the energy efficiency of the production processes, the company said.

“Metso demands sustainability not only of its own production, but also 30% of its suppliers in terms of spend are required to set science-based emission targets by 2024,” the company said.

By streamlining transportation routes and optimising warehouse locations, Metso aims for a 20% reduction in transportation emissions by 2025 (scope 3 GHG emissions target).

Through extensive research and development work, Metso has been able to significantly reduce the energy consumption in customer processes, it said. To continue this development, the company is aiming for a 10% reduction in GHG emissions in the most “energy-intensive customer processes” using Metso products by 2025.

“This is further reinforced by the demanding energy-efficiency targets in all Metso R&D projects. As supportive actions, Metso will also offset flight emissions by 100% by 2021 and continue to find new ways to decrease emissions, for example, in offices,” it said.

Metso President and CEO, Pekka Vauramo, said: “We are extremely happy about the ratification of our science-based CO2 emissions targets.

“Our Climate Program is an important step in our goal of reducing greenhouse gas emissions. It is also an essential element in Metso being a responsible and trusted partner to our customers. We aim to improve our customers’ productivity in a sustainable manner, and we involve all our stakeholders in reaching this goal.”

For Metso, Scope 1 emissions are generated from fuels used in production, Scope 2 emissions are generated from the purchased energy and Scope 3 emissions are generated from transportation, procurement, travelling and product use, it said.

In 2018, Metso’s emissions clocked in at over 1 Mt of CO2, including 655,732 t from purchased goods and services, 136,968 t related to production, 161,629 t in “upstream” transportation, 77,821 t in “downstream” transportation and 22,256 t in business flights.

At the same time, the emissions saved in Metso product use in 2018 amounted to more than 1.07 Mt of CO2 through its energy-efficient grinding solutions HRC™, Vertimill® and SMD (stirred media detritor).