Australian mining company BHP has signed a memorandum of understanding (MOU) with Chinese steelmaker Baowu Steel, to invest US$35mn. The duo would share technical knowledge for reducing greenhouse gas emissions in the global steel industry and integrated steelmaking in their five-year partnership.
At one of the facilities of Baowu Steel in China, the deployment of carbon capture, utilisation and storage in the steel sector will also be checked.
Solutions to use low carbon fuel sources like hydrogen injection in blast furnaces, as well as support the transition of the steel sector into a low-carbon industry will be sought.
BHP CEO, Mike Henry, said BHP’s investment will be funded under the $400mn Climate Investment Program.
In October 2019, China Baowu had announced the establishment of a Low Carbon Metallurgy Innovation Centre and planned establishment of Global Low Carbon Metallurgy Innovation Alliance.