Steelmaker China Baowu, partners launch decarbonization alliance

Top steelmaker China Baowu Steel Group Corp. Ltd. and its partners launched the Global Low-Carbon Metallurgical Innovation Alliance that aims to promote decarbonization technologies in the industry, Reuters reported Nov. 18.

The group has over 60 members including ArcelorMittal, BHP Group, Rio Tinto Group, Vale SA, Fortescue Metals Group Ltd., Tata Steel Ltd., thyssenkrupp AG, Angang Steel Co. Ltd., Hbis Co. Ltd. and Shagang Iron and Steel Group, the report said.

Baowu aims to slash emissions by 30% by 2035 and achieve carbon neutrality by 2050. To reach its goals, the company will reportedly pursue the use of hydrogen-enriched carbon recycling blast furnaces, green hydrogen-fuelled metallurgy, large-scale use of recycled steel, and carbon capture and utilization, among other options.

Baowu expects to start production from its hydrogen-enriched carbon-recycling blast furnaces at its XinJiang Ba Yi Iron & Steel Co.Ltd. operation in August 2022, the report said, citing Baowu Chairman Chen Derong.

The company is also evaluating the construction of a demonstration short-process steel project in China's Xinjiang province that has an annual capacity of 500,000 tonnes to 1 million tonnes and will use steel scrap for raw material.

Baowu set up an innovation fund worth up to 35 million yuan per year for basic research into low-carbon metallurgy. In total, the company's decarbonization investments are expected to reach 200 billion yuan by 2035, the report said.

As of Nov. 17, US$1 was equivalent to 6.38 Chinese yuan.