BHP Partners with China Baowu for Challenges of Climate Change
BHP has signed a memorandum of understanding with world leading steel producer China Baowu with the intention to invest up to USD 35 million and
share technical knowledge to help address the challenge of reducing greenhouse gas emissions facing the global steel industry. The five-year partnership will focus on the development of low carbon technologies and pathways capable of emission intensity reduction in integrated steelmaking. Under the MOU, the deployment of carbon capture, utilisation and storage in the steel sector will also be investigated at one of China Baowu’s production bases.
BHP’s investment will be funded under the USD 400 million Climate Investment Program, set up last year to coordinate and prioritise projects, partnerships, R&D and venture investments to reduce Scope 1, 2 and 3 emissions, offsets and support development of technologies with the highest potential to impact change.
Last month BHP awarded a tender for world’s first LNG-fuelled Newcastlemax bulk carrier to carry iron ore between Western Australia and China, which will reduce emissions by more than 30% per voyage.
In October 2019, China Baowu announced the establishment of a Low Carbon Metallurgy Innovation Centre and plans to establish a Global Low Carbon Metallurgy Innovation Alliance.
Consistent with the ambitions of China Baowu and BHP to drive efficiency and address emissions across the global steel industry, both companies will work together to establish a China Baowu-BHP Low Carbon Metallurgy Knowledge Sharing Center, to link complementary research and share low carbon and green development knowledge with domestic and international steel industry stakeholders.