Posted by Daniel Gleeson on July 19, 2022

BHP has signed a Memorandum of Understanding (MoU) with Tata Steel India, one of the world’s largest steelmakers, with the aim of jointly studying and exploring technologies for the manufacture of iron and low carbon steel.

Under this partnership, BHP and Tata Steel intend to collaborate on ways to reduce the emission intensity of the blast furnace steel route, through two priority areas – the use of biomass as an energy source, and the application of carbon capture and utilization (CCU) in steel production. The partnership aims to help both companies progress towards their respective climate change goals, and support India’s ambition to become carbon neutral, said BHP.

The technology being explored in this partnership has the potential to reduce the emission intensity of integrated steel mills by up to 30%. Most importantly, these projects demonstrate how reductions applied to the blast furnace iron-making process, which accounts for more than 60% of India’s steel production, can materially reduce the carbon intensity of existing capacity.

Beyond these projects, BHP and Tata Steel have committed to a strong ongoing knowledge exchange that will see both parties explore further collaborations, ecosystems and business opportunities in the steel value chain, as well as research and innovation sectors in India and Australia.

BHP’s Chief Commercial Officer, Vandita Pant, said: “This partnership with Tata Steel highlights the importance of collaboration to successfully identify and implement emission reduction technologies in steelmaking, including by developing workable reductions in existing blast furnace processes in a phased manner. reduce the intensity of its carbon emissions.”

He also highlighted how BHP can contribute to Tata Steel, and the role of the wider steel industry in helping achieve India’s ambition to become carbon neutral, especially as India is expected to experience strong steel demand growth over the next three decades, supported by population growth. and increasing urbanization.

“India has invested heavily in blast furnace lines for steel production, and crude steel production stood at 118 Mt last year,” he said. “Therefore, it is imperative to innovate and pinpoint pathways to reduce emissions from blast furnaces, while alternative steel pathways emerge and upgrade low-carbon energy systems.

“A greener steel industry will be an integral part of India’s growth and decarbonization journey, and we intend to work hard with Tata Steel to enable this development and hopefully become a benchmark for other industries to emulate and learn from. Finding a path to net zero for steelmaking is challenging and complex, but we believe that by working with industry leaders like Tata Steel, we will find solutions more quickly to help reduce carbon emissions in steel production.”

Talking about the partnership, Tata Steel Vice President, Group Strategic Procurement, Rajiv Mukerji, said: “The steel sector will play a critical role in achieving India’s net-zero commitment. Tata Steel has worked on several pilot projects focused on developing deep decarbonization technologies such as CCU, hydrogen-based steelmaking, biomass use and other alternative iron-making routes. We believe strategic collaboration is critical in paving the way for innovation to accelerate the adoption of breakthrough technologies on a large scale and therefore this partnership with BHP is an important step for us.”

Tata Steel and BHP are deeply involved in building partnerships with like-minded industry leaders in reducing emissions in steelmaking. BHP has, in recent years, partnered with global majors POSCO, China Baowu, JFE Steel and HBIS Group to explore reducing greenhouse gas emissions from steelmaking. The combined output of the five steel firms across Asia – in China, India, Japan and South Korea – is equivalent to about 13% of reported global steel production, BHP said.



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