BHP and HBIS Group have signed a new Memorandum of Understanding (MOU) to deepen our strategic collaboration on decarbonizing the steel value chain. This marks a significant milestone in the partnership, building on multiple successful agreements and projects since an initial partnership announced in 2021. It is also a breakthrough step for both parties to further extend the value chain cooperation to steel end-users and promote the low-carbon transformation of the industry by exploring life cycle carbon reduction projects.
Since the first MOU in 2021, BHP and HBIS Group have successfully conducted trials of enhanced lump use in the blast furnace into ongoing operations, kicked off design and construction of a novel carbon capture pilot, and conducted proof of concept DRI-EAF trials at HBIS' hydrogen metallurgy demonstration plant in ZhangXuan Tech, using BHP's Pilbara iron ores in the raw material blend.
Building on the progress to date, the new MOU focuses on further exploring opportunities to demonstrate blast furnace abatements at larger scale with greater impact and continue to optimise the use of BHP's Pilbara iron ores in commercial-scale DRI-EAF steel production, as well as life cycle assessment projects to track reduced greenhouse gas intensity through the value chain steps including with steel end use partners, and fostering technical talent and industry knowledge sharing. Through these actions, BHP aims to establish best practices and scalable solutions that align with its climate goals.
This renewed collaboration supports BHP's Scope 3 goals related to steelmaking, outlined in its Climate Transition Action Plan 2024.
As steel remains a cornerstone of global development, this partnership underscores the critical role of collaboration and collaborative demonstration in accelerating the transition to a lower carbon emissions steel industry.
