Baoshan Iron & Steel (Baosteel), which is China’s largest listed steel company, has signed an agreement for carbon capture, utilization, and storage (CCUS) with Chinese oil and gas enterprise Sinopec, global energy major Shell and German chemical producer BASF. The news was announced on August 7 on Baosteel’s WeChat account.
Baoshan Iron & Steel is a subsidiary of the government-owned China Baowu Steel Group, which is the biggest steel manufacturer globally.
Baosteel said the four companies will together evaluate the feasibility of building China’s first open 10 million metric ton CCUS site.
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According to the announcement, the objective of the initiative is to offer carbon reduction solutions to industrial enterprises located along the Yangtze River in east China. Additionally, the plan aims to establish a low-CO2 product supply chain. The collaboration between the four parties aims to foster growth in the steel and petrochemical sectors.
Eastern China accounts for 40% of the nation’s total gross domestic product (GDP) and is a region that is among the country’s largest CO2 emitters. It accounts for 30% of China’s overall carbon dioxide emissions.
The agreement follows a memorandum of understanding (MoU) that the four companies signed in November 2022 in Shanghai.
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