BHP and HBIS Strengthen Partnership to Advance Decarbonization in Steel Industry

BHP and HBIS Group, two major players in the global steel industry, have taken another significant step in their commitment to decarbonize the steel value chain. The two companies have signed a new Memorandum of Understanding (MOU) aimed at advancing efforts toward a low-carbon steel industry. This collaboration builds upon a partnership first established in 2021, marking a pivotal milestone in their shared commitment to reducing greenhouse gas emissions in the steelmaking process.

The partnership between BHP, a leading supplier of iron ore, and HBIS, one of the world’s largest steel producers, has already seen significant achievements. Since the initial MOU was signed in 2021, the two companies have conducted successful trials involving enhanced lump use in blast furnaces, designed and constructed a novel carbon capture pilot, and carried out proof-of-concept Direct Reduced Iron (DRI) and Electric Arc Furnace (EAF) trials. These trials utilized BHP’s high-quality Pilbara iron ores at HBIS’s hydrogen metallurgy demonstration plant in ZhangXuan Tech, marking a crucial step toward achieving lower-carbon steel production.

Building on this success, the new MOU emphasizes further exploration of opportunities to scale up blast furnace abatements, which would have a greater impact on reducing emissions at a commercial level. The partners aim to optimize the use of BHP’s Pilbara iron ores in DRI-EAF steel production, demonstrating its feasibility and effectiveness in large-scale production.

Moreover, the new MOU outlines plans for conducting life cycle assessments, which will track the reduction of greenhouse gas intensity across the entire value chain, including with steel end-user partners. This will provide valuable insights into how carbon reduction can be achieved throughout the production and consumption stages of steel. Additionally, the collaboration will focus on promoting the exchange of technical knowledge and fostering the development of skilled talent within the industry.

This renewed collaboration also aligns with BHP’s broader climate transition goals, as outlined in its Climate Transition Action Plan 2024. Specifically, it supports BHP’s Scope 3 emissions targets, which relate to emissions from its customers’ use of its products—such as steelmaking. The focus on steelmaking is critical, given the industry’s significant role in global emissions and its contribution to climate change.

As steel continues to be a cornerstone of global development, this partnership underscores the importance of collaboration in driving the decarbonization of the steel industry. The two companies believe that through joint efforts and technological innovations, they can create scalable solutions that will help reduce the steel sector’s carbon footprint and contribute to a more sustainable future. This partnership not only represents a bold step for BHP and HBIS but also sets a model for other industry players to follow.

The BHP-HBIS collaboration demonstrates that decarbonization is not just a goal, but a shared journey that requires the combined efforts of all stakeholders in the steel industry. With the world increasingly focused on tackling climate change, partnerships like these are crucial in accelerating the transition to a low-carbon economy.