Rio Tinto & POSCO Sign Green Steel MOU
Rio Tinto and POSCO have signed a Memorandum of Understanding to jointly explore, develop and demonstrate technologies to transition to a low-carbon emission steel value chain. The partnership will explore a range of technologies for decarbonisation across the entire steel value chain from iron ore mining to steelmaking, including integrating Rio Tinto’s iron ore processing technology and POSCO’s steelmaking technology. The MoU with POSCO underlines Rio Tinto’s commitment to working in partnerships with customers on steel decarbonisation pathways and to invest in technologies that could deliver reductions in steelmaking carbon intensity of at least 30% from 2030 or with potential to deliver carbon neutral steelmaking pathways by 2050.
Both Rio Tinto and POSCO share the ambition to reach net zero carbon emissions by 2050.
As one of South Korea’s leading industrial companies, POSCO’s efforts to decarbonise will play an important role in achieving the country’s recently announced ambition to become carbon-neutral by 2050, which has inspired Korean companies to accelerate decarbonisation activities. POSCO plans to utilise carbon risk as an opportunity, overcoming its inevitable need for CO2 emission. Through innovative technologies, such as CCUS (Carbon Capture, Utilization and Storage), and hydrogen-based steelmaking, POSCO aims to equip itself with ‘low carbon competitiveness’ which enables providing ‘green steel’.
As part of climate strategy, Rio Tinto entered into partnerships with the world’s largest steel producer, China Baowu Steel Group, one of China’s most prestigious and influential universities, Tsinghua University, and Japan’s largest steel producer, Nippon Steel Corporation, to develop and implement new methods to reduce carbon emissions and improve environmental performance across the steel value chain.