BHP inks MOU with HBIS to explore emissions reduction opportunities

BHP Group on March 8 said that it signed a memorandum of understanding with Hebei Iron & Steel Group Co. Ltd to invest up to $15 million over three years to jointly study and explore technologies and pathways that reduce greenhouse gas emissions.

The two companies plan to collaborate on hydrogen-based direct reduction technology, the recycling and reuse of steelmaking slag, and the role of iron ore lump utilization to help reduce emissions from ironmaking and steelmaking.

The partnership aims to advance each company's climate change goals and support the steel industry's role in helping China become carbon-neutral by 2060.

BHP's investment will be drawn from its $400 million climate investment program, which was established in 2019 to find ways for reducing Scope 1, 2 and 3 emissions, according to the statement.

The Australian miner has also teamed up with JFE Steel Corp. and China Baowu Steel Group Corp. Ltd. for the decarbonization of the steel industry.