Tag Archives: Vandita Pant

BHP and China’s HBIS Group Co Ltd expand partnership to CCUS tech trial

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BHP has signed an agreement for piloting of carbon capture and utilisation technology with China’s HBIS Group Co Ltd (HBIS), one of the world’s largest steelmakers and a major iron ore customer of BHP.

As part of this new project, HBIS and BHP will trial pilot-scale demonstrations of carbon capture and utilisation technologies at HBIS’ steel operations in China. The trial will develop and test technologies that can be integrated into steel production processes to reduce the CO2 emissions. These include Vacuum Pressure Swing Adsorption, VPSA, an alternative technology to capture the CO2, and two utilisation technologies (slag mineralisation and biological conversion to protein) to sequester the CO2.

In addition, BHP will support HBIS in developing and deploying absorptive desulphurisation at HBIS ZXHT Hydrogen Metallurgy Demonstration Project in Xuanhua, Hebei, intended to enable the utilisation of circa-60,000 t/y of captured CO2 from the direct reduced iron (DRI) process in the food or industrial sectors.

BHP’s Chief Commercial Officer, Vandita Pant, said: “Our multi-faceted partnership with HBIS will now include pilot testing of novel carbon capture technology at their operating sites in Hebei, and builds on the separate carbon capture trial with ArcelorMittal, Mitsubishi Heavy Industry and Mitsubishi Development, announced in October 2022. Hebei province accounts for around 20% of China’s reported steel production and represents one of the locations in which we aim to support future carbon capture, utilisation and storage initiatives. With our support, HBIS will also be pilot testing options for the utilisation of captured carbon dioxide for the production of saleable products and sequestration in waste slag.”

This new agreement expands on the work streams envisaged in the Memorandum of Understanding (MoU) signed by BHP and HBIS in 2021, together with the Phase 1 research and development work announced in 2022 with HBIS and University of Science and Technology Beijing. In separate work under the MoU, BHP has also supported HBIS in Enhanced Lump trials, aimed at developing processes for improving direct feed iron ore lump use to achieve incremental reductions in carbon dioxide emissions intensity of steel production, at one of the steelmaker’s plants in Hebei province.

BHP’s latest collaboration agreement with HBIS will tap into the investment of up to $15 million over three years proposed by BHP and HBIS in the MoU signed in 2021.

HBIS Chairman, Yu Yong, said: “BHP is a globally renowned resource company and a long-term partner with HBIS with shared goals in relation to the development of technologies to abate carbon emissions in the steel-making sector. The signing of these projects is another milestone since the two parties’ ‘Memorandum of Understanding for Strategic Collaboration in Climate Change’ signed in 2021, it starts a new journey in jointly exploring CCUS technology developments in the steel sector.”

Chairman Yu also stated: “HBIS is committed to being a leader, explorer, and practitioner in the industry’s transition to lower carbon emissions. CCUS has been identified as a breakthrough technology for reducing carbon emissions from steel and this has anchored CCUS technology as a key component in HBIS Group’s low-carbon technology roadmap. In the future, HBIS will continue to focus on the goal of jointly addressing climate change, deepening cooperation with industry value chain partners, adhering to the concept of sustainable development, and consistently cultivating and investing in the green and low-carbon field.”

BHP and Hatch commence design study for an electric smelting furnace pilot

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BHP and global engineering, project management and professional services firm, Hatch, have signed an agreement to design an electric smelting furnace pilot (ESF) plant in support of a decision to construct this facility in Australia.

The facility will aim to demonstrate a pathway to lower carbon dioxide (CO2) intensity in steel production using iron ore from BHP’s Pilbara mines for BHP’s steelmaking customer, BHP says.

The small-scale demonstration plant would be used to collaborate with steel producers and technology providers to generate and share learnings with the aim of accelerating scale up of ESF plant designs.

The pilot facility would be intended to test and optimise production of iron from the ESF, a new type of furnace that is being developed by leading steel producers and technology companies targeting low CO2 emission-intensity steel. The ESF is capable of producing steel from iron ore using renewable electricity and hydrogen replacing coking coal, when combined with a direct reduced iron (DRI) step. Estimates show that reductions of more than 80% in CO2 emission intensity are potentially achievable processing Pilbara iron ores through a DRI-ESF pathway, compared with the current industry average for the conventional blast furnace steel route, BHP says.

The ESF allows for greater flexibility in input raw materials, addressing a key barrier to wider adoption of other lower CO2 emissions production routes, such as use of electric arc furnaces which are designed for scrap steel and high grade DRI only. The ESF also has the potential to be integrated into a steel plant’s existing downstream production units.

The pilot facility will enable deeper and more accurate insights into the performance of this technology for converting iron ores into molten iron and steel. Planned test programs will help de-risk further investment in commercial scale projects, thereby complementing development plans of BHP’s steel customers. This scale-up approach has been utilised by other industry demonstrations such as Sweden’s HYBRIT project, BHP added.

BHP and Hatch will assess several locations in Australia for the proposed facility based on supporting infrastructure, technology skills and the availability of local partnerships to build and operate the facility.

BHP’s Chief Commercial Officer, Vandita Pant, said: “We see the ESF process as a critical breakthrough in significantly reducing the carbon emissions intensity of steel production and one that provides an opportunity for iron ore from our Pilbara mines. The steel industry has identified the ESF as a viable option to use a wider range of raw materials and steel companies globally are looking to build commercial-scale ESF plants as part of their CO2 emission reduction roadmaps.”

BHP’s Group Sales and Marketing Officer, Michiel Hovers, said: “Hatch is a key partner in carbon emissions reduction initiatives across the world. We are pleased that we can collaborate with Hatch, alongside BHP’s existing customer and research partnerships, to further progress the development of pathways towards a lower GHG emission footprint for the steelmaking industry. The ESF technology is very exciting and potentially very relevant for reducing the carbon emissions intensity of steel production and provides new and exciting opportunities for our Pilbara iron ore and our customers.

“BHP and Hatch have collaborated on steel technology and design for reducing GHG emissions from over several years, including the ESF and in collaboration with steel producers, and this project is a natural progression in our partnership.”

Hatch’s Managing Director for Bulk Metals, Joe Petrolito, said: “Hatch is excited to collaborate with BHP on this forward-looking initiative and is honored to contribute to the efforts of an industry leader who is dedicated to driving tangible progress. This project marks a significant milestone in the pursuit of decarbonisation within a challenging sector that underpins global infrastructure and progress.”

BHP partners with Neoen on Olympic Dam renewable power pact

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BHP says it has signed a renewable Power Purchase Agreement (PPA) with Neoen, which is expected to meet half of Olympic Dam’s electricity needs from its 2026 financial year.

The agreement, which is based on current forecast demand, will allow Olympic Dam to record a net zero emission position for the contracted volume of supply, according to BHP.

The PPA is expected to supply 70 MW of electricity to Olympic Dam and will support Neoen to construct the 203 MW Goyder South Stage 1b Wind Farm, assuming all relevant consents are obtained, BHP said. This wind farm is to form part of the larger Goyder Renewables Zone in South Australia, and will introduce new renewable generation into the South Australian electricity grid.

In addition, Neoen will construct a large-scale battery energy storage system in Blyth, South Australia, to support the PPA, which will also assist in improving the stability of the South Australian electricity grid.

Goyder South Stage 1, consisting of Goyder South 1a and 1b, is the first stage of Neoen’s flagship project known as Goyder Renewables Zone – a hybrid wind, solar and storage project located in mid-north South Australia. Goyder South has development approval for a total of 1,200 MW of wind generation, 600 MW of solar generation and 900 MW of battery storage capacity – making it South Australia’s largest renewable project.

BHP Olympic Dam Asset President, Jennifer Purdie, said: “The world needs South Australia’s high-quality copper to build renewable technologies and infrastructure, and BHP is focused on producing that copper more sustainably.”

“This agreement will support BHP on its decarbonisation journey, and provide new firmed renewable energy and increased stability to the South Australian grid.”

This latest agreement follows commitments BHP has made in recent years, which have seen renewable electricity contribute to powering BHP facilities in Western Australia, South Australia, Queensland and Chile.

This PPA continues the actions BHP is taking to contribute to its medium-term target to reduce operational greenhouse gas emissions (Scopes 1 and 2 from its operated assets) by at least 30% from adjusted 2020 financial year levels by its 2030 financial year.

BHP’s Chief Commercial Officer, Vandita Pant, said: “BHP is consciously working towards our target of at least a 30% reduction in our operational emissions by FY2030. Renewable energy partnerships, such as this agreement with Neoen, are important steps towards that outcome, and our longer-term 2050 net zero goal.”

Louis de Sambucy, Neoen Australia’s Managing Director, said: “We are delighted to provide BHP with this highly innovative solution. We are convinced that our ability to combine our assets and our energy management capabilities to create bespoke commercial offers will be a key element of success for our future developments.”

Xavier Barbaro, Neoen’s Chairman and Chief Executive Officer, added: “We thank BHP for their vote of confidence. Thanks to its storage assets and deep expertise, Neoen is now able to offer 24/7 energy to its customers. This first baseload PPA is a significant step forward for Neoen and will serve as a template for future contracts, opening up new market opportunities in Australia and in the rest of the world.”

Neoen, BHP says, is one of the world’s leading independent producers of exclusively renewable energy, having close to 5.6 GW of solar, wind and storage capacity in operation or under construction across numerous countries.

BHP, Pan Pacific Copper and Norespower collaborate on ‘green’ shipping project

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BHP has partnered with Pan Pacific Copper (PPC) – a member of JX Nippon Mining & Metals group – and Norsepower, a leading global provider of auxiliary wind propulsion systems, to reduce greenhouse gas (GHG) emissions from maritime transportation between BHP’s mines in Chile and PPC’s smelters in Japan.

The parties are conducting a technical assessment and plan a retrofit installation of wind-assisted propulsion system onboard the M/V Koryu, a combination carrier operated by Nippon Marine – a member of SENKO group (shares held by SENKO 60%, JX Nippon Mining & Metals 40%).

BHP and PPC have multi-year agreements for delivery of copper concentrates from Chile to Japan as well as sulphuric acid from Japan to Chile, making the cargo capacity utilisation of M/V Koryu (a 53,762 deadweight tonne combination carrier) one of the highest in the industry.

Norsepower’s Rotor Sails installation – a “push-button wind propulsion” system estimated to be around ten times more efficient than a conventional sail that requires no reefing or crew attention when in operation – is scheduled for completion by the September quarter of 2023, which is expected to make M/V Koryu the cleanest vessel in its category when measured for greenhouse gas emissions intensity, BHP says.

Norsepower’s Rotor Sails are modernised versions of Flettner rotors, and the technology is based on the Magnus effect that harnesses wind to maximise ship fuel efficiency. When wind conditions are favourable, Rotor Sails allow the main engines to be throttled back, saving fuel and reducing emissions, while also reducing power needed to maintain speed and voyage time, according to BHP.

BHP Chief Commercial Officer, Vandita Pant, said: “Identifying and implementing innovative and sustainable solutions through our strong commodity and supply chain partnerships remain essential in supporting BHP’s decarbonisation ambitions. We look forward to working with PPC on the wind-assisted propulsion system to enable further GHG emissions reduction in our supply chain and add to the already strong partnership between BHP and PPC.”

JX Nippon Mining & Metals Deputy Chief Executive Officer/PPC President, Kazuhiro Hori, said: “PPC and BHP have been sharing the mission to accelerate the activities for decarbonisation in line with our respective climate targets and goals. The Koryu project is a good example of our collaboration and valuable step that proves eagerness by both companies to establish ecosystem partnerships to take on the climate challenge. We are looking forward to further developing the partnership with BHP in various areas.”

Norsepower CSO, Jukka Kuuskoski, said: “Our vision is to set the standard in bringing sailing back to shipping, and empower the maritime industry towards reaching the goal of zero carbon emissions. As fuel prices increase and a carbon levy is initiated, investing in technologies which have proven emissions reductions and fuel savings is essential for long-term commercial success. Working with BHP, PPC and Nippon Marine demonstrates the increased commitment to greener operations, particularly within the bulk carrier market. We look forward to completing the installation and seeing the results.”

This latest partnership with PPC and Norsepower follows BHP’s collaboration agreements in the maritime decarbonisation segment that includes the first marine biofuel trial involving an ocean-going vessel bunkered in Singapore, taking delivery of the first of five LNG-fuelled Newcastlemax bulk carriers and joining a consortium to assess the development of an iron ore Green Corridor between Australia and East Asia. BHP is also a founding member of the Global Maritime Decarbonisation Centre in Singapore.

BHP and Tata Steel to partner on low carbon iron and steelmaking tech

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BHP has signed a Memorandum of Understanding (MoU) with India’s Tata Steel, one of the world’s largest steelmakers, with the intention to jointly study and explore low carbon iron and steelmaking technology.

Under the partnership, BHP and Tata Steel intend to collaborate on ways to reduce the emission intensity of the blast furnace steel route, via two priority areas – the use of biomass as a source of energy, and the application of carbon capture and utilisation (CCU) in steel production. The partnership aims to help both companies progress toward their respective climate change goals, and support India’s ambitions to be carbon neutral, BHP said.

The technologies explored in this partnership can potentially reduce emission intensity of integrated steel mills by up to 30%. Importantly these projects demonstrate how abatements applied to the blast furnace iron-making process, which contributes to more than 60% of India’s steel production, can materially reduce the carbon intensity of existing capacity.

Beyond these projects, BHP and Tata Steel have committed to a robust ongoing knowledge exchange that will see both parties explore further collaborations, ecosystems and business opportunities in the steel value chain, and the research and innovation sectors in both India and Australia.

BHP’s Chief Commercial Officer, Vandita Pant, said: “The partnership with Tata Steel highlights the importance of collaborations in being able to successfully identify and implement emission reduction technologies in steelmaking, including by developing abatements that can apply to the existing blast furnace process to incrementally reduce its carbon emissions intensity.”

She also highlighted how BHP can contribute to Tata Steel’s, and the broader steel industry’s role in helping to achieve India’s ambitions to be carbon neutral, particularly as India is expected to see robust steel demand growth over the next three decades, underpinned by a growing population and rising urbanisation.

“India has invested heavily in the blast furnace route for steel production, and crude steel output was 118 Mt last year,” she said. “It is, therefore, critical to innovate and demonstrate pathways to reduce emissions from the blast furnace, while alternative steel pathways emerge and low carbon energy systems scale-up.

“A greener steel industry will be integral for India’s growth and decarbonisation journey, and we intend to work hard with Tata Steel to enable this development and hopefully set a benchmark for others in the industry to emulate and learn from. Finding pathways to net zero for steelmaking is challenging and complex but we believe that by working with industry leaders like Tata Steel, together, we will find solutions more quickly to help reduce carbon emissions in steel production.”

Speaking on the partnership, Tata Steel’s Vice President, Group Strategic Procurement, Rajiv Mukerji, said: “The steel sector will play a critical role in achieving India’s net-zero commitment. Tata Steel is already working on several pilot projects focussed on the development of deep decarbonisation technologies such as CCU, hydrogen-based steelmaking, use of biomass and other alternate ironmaking routes. We believe strategic collaborations are vital in paving the way for innovations to accelerate the deployment of breakthrough technologies at scale and therefore this partnership with BHP is an important step for us.”

Tata Steel and BHP have been heavily involved in establishing partnerships with like-minded industry leaders in reducing emissions in steelmaking. BHP has, in recent years, partnered with global majors POSCO, China Baowu, JFE Steel and HBIS Group to explore greenhouse gas emissions reduction from steelmaking. The combined output of the five steel companies across Asia – in China, India, Japan and South Korea – equates to around 13% of reported global steel production, BHP says.

BHP achieves shipping first as it extends funding for steelmaking decarbonisation

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BHP has welcomed the arrival of MV Mt. Tourmaline – the world’s first LNG-fuelled Newcastlemax bulk carrier – that will transport iron ore between Western Australia and Asia from 2022.

The mining company has chartered five LNG-fuelled Newcastlemax bulk carriers from Eastern Pacific Shipping (EPS) for five years and awarded the LNG fuel contract to Shell.

On her maiden voyage, the vessel arrived at Jurong Port in Singapore for her first LNG bunkering operation (the process of fuelling ships with LNG) which will take place through the first LNG bunker vessel in Singapore, the FueLNG Bellina. FueLNG, a joint venture between Shell Eastern Petroleum and Keppel Offshore & Marine, operates the bunker vessel.

After LNG bunkering, the 209,000-deadweight tonne vessel will leave for Port Hedland in Western Australia for iron ore loading operations.

BHP Chief Commercial Officer, Vandita Pant, said: “BHP works with our suppliers to embed innovative and sustainable solutions in our supply chain. This vessel delivers significant improvements to energy efficiency and emissions intensity, as well as reduced overall GHG emissions in our value chain. These achievements demonstrate BHP, EPS and Shell’s shared commitment to social value through innovative emissions reduction initiatives.

“These LNG-fuelled vessels are expected to reduce GHG emissions intensity by more than 30% on a per voyage basis compared to a conventional fuelled voyage and will contribute towards our 2030 goal to support 40% emissions intensity reduction of BHP-chartered shipping of our products.”

EPS CEO, Cyril Ducau, said: “Today’s historic LNG bunkering is further evidence that the industry’s energy transition is in full swing. These dual-fuel LNG Newcastlemax vessels are a world’s first, but more importantly, they represent a culture shift in shipping and mining.”

In a separate announcement, BHP confirmed it would extend its partnership with the Centre for Ironmaking Materials Research (CIMR) at the University of Newcastle with a further A$10 million ($7 million) in funding to support ongoing research into decarbonising steelmaking.

The expanded research program will focus on low carbon iron and steelmaking using BHP’s iron ore and metallurgical coal, including conventional blast furnace ironmaking with the addition of hydrogen, and emerging alternative low carbon ironmaking technologies.

The collaboration, with funding from BHP’s $400 million Climate Investment Program, will last five years and help train the next generation of PhD researchers and engineers.

Dr Rod Dukino, BHP VP Sales & Marketing Iron Ore, said: “Greenhouse gas emissions from steelmaking represent around 7-10% of global total estimated emissions and the industry remains one of the most difficult sectors in the world to abate. Research and innovation have a critical role to play in accelerating the industry’s transition to a low carbon future.

“The expanded research program with the University of Newcastle complements BHP’s existing partnerships with our key steelmaking customers in China, Japan and South Korea. We are pursuing the long-term goal of net zero Scope 3 greenhouse gas emissions by 20501. Recognising the particular challenge of a net zero pathway for this hard-to-abate sector, we are continuing to partner with customers and others in the steel value chain to seek to accelerate the transition to carbon neutral steelmaking.”

BHP and POSCO to collaborate on low-carbon steelmaking technologies

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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.

BHP and Tesla to collaborate on battery supply chain sustainability

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BHP has agreed to supply Tesla Inc with nickel from its Western Australia operations, in addition to looking at how the two companies can collaborate on ways to make the battery supply chain more sustainable.

The supply agreement will see nickel from BHP’s Nickel West asset in Western Australia, one of the most sustainable and lowest carbon emission nickel producers in the world, BHP says, head to Tesla for use in its electric vehicles and battery storage systems.

BHP Chief Commercial Officer, Vandita Pant, said: “Demand for nickel in batteries is estimated to grow by over 500% over the next decade, in large part to support the world’s rising demand for electric vehicles.

“We are delighted to sign this agreement with Tesla Inc and to collaborate with them on ways to make the battery supply chain more sustainable through our shared focus on technology and innovation.”

This latter collaboration will focus on end-to-end raw material traceability using blockchain; technical exchange for battery raw materials production; and promotion of the importance of sustainability in the resources sector, including identifying partners most aligned with BHP and Tesla Inc’s principles and battery value chains, BHP said.

BHP will also collaborate with Tesla Inc on energy storage solutions to identify opportunities to lower carbon emissions in their respective operations through increased use of renewable energy paired with battery storage, it added.

BHP Minerals Australia President, Edgar Basto, said: “BHP produces some of the lowest carbon intensity nickel in the world, and we are on the pathway to net zero at our operations. Sustainable, reliable production of quality nickel will be essential to meeting demand from sustainable energy producers like Tesla Inc.

“The investments we have made in our assets and our pursuit of commodities like nickel will help support global decarbonisation and position us to generate long-term value for our business.”

BHP signs third low-carbon steelmaking partnership

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BHP has signed a memorandum of understanding (MoU) with China’s HBIS Group Co Ltd, one of the world’s largest steelmakers and a major customer of BHP’s iron ore, with the intention of investing up to $15 million over three years to jointly study and explore greenhouse gas emission reduction technologies and pathways.

Under the partnership, BHP and HBIS Group intend to collaborate on three priority areas: hydrogen-based direct reduction technology, the recycling and reuse of steelmaking slag, and the role of iron ore lump use to help reduce emissions from ironmaking and steelmaking.

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.

BHP’s Chief Commercial Officer, Vandita Pant, said: “We view decarbonisation of the steel industry as a complex puzzle that requires multiple technological solutions across the value chain over different time horizons. 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.”

In February, the mining major signed a similar MoU with leading Japanese steel producer, JFE Steel, while, in November 2020, BHP and China Baowu signed a pact that could see up to $35 million invested in tackling greenhouse gas emission reductions in the global steel industry.

BHP’s investment would be drawn from its $400 million Climate Investment Program, established in 2019 to support projects, partnerships, research and development to help reduce Scope 1, 2 and 3 emissions.

BHP Chief Executive Officer, Mike Henry, said: “BHP has a long and trusted relationship with HBIS Group, and we are pleased to establish this strategic partnership to explore new ways to reduce emissions from steelmaking. Global decarbonisation will require collaboration and collective effort, and our work with partners such as HBIS Group will build on our own actions and help reduce emissions right through the value chain.”

Chairman of the World Steel Association, Party Secretary and Chairman of HBIS Group, Yu Yong, said: “The signing of the MoU fully 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, with a common vision to ‘contributing to a community of a shared future for mankind’. This partnership ushers in a new chapter for the two companies to deepen our strategic cooperation and to achieve collaborative development.”

BHP has also been active in other areas to reduce emissions, including awarding the world’s first LNG-fuelled Newcastlemax bulk carrier tender and the first LNG supply agreement for those vessels, and renewable energy supply contracts for BHP’s Queensland coal mines and Nickel West operations.

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

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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.”