Mining major BHP Group Ltd (ASX: BHP) and China’s HBIS Group Co Ltd (SSE: 000709) said Monday they have teamed up to carry out carbon capture, utilization and storage (CCUS) trials at the Chinese company’s steel mills.
In 2011, the parties signed a memorandum of understanding (MoU), under which an investment of up to $15 million will be made over three years to finance the trials.
The joint project includes the development and testing of technologies to be integrated into steel production processes with the aim to cut carbon dioxide (CO2) emissions.
In addition, HBIS will conduct pilot tests for the utilization of captured CO2 to generate products fit for sale and its storage in waste slag from the company’s steel production.
“This collaboration between BHP and HBIS, a leader in the global steel industry and an important customer for our iron ore, will provide a strong example for the industry to follow towards the wider deployment of CCUS and towards achieving major reductions in the CO2 emission intensity of steel production,” Mike Henry, CEO of the Australian major, said in a statement.
The agreement is in line with both companies’ ambitions to become carbon neutral by 2050, as per their websites.
The Chinese steel industry is responsible for around 15% of the total CO2 emissions in the country, which is the world’s top steel producer.
According to a study by consultancy Wood Mackenzie, greenhouse gas (GHG) emissions from China’s steel sector exceeded 2 billion tons in 2021, which corresponded to approximately 61% of emissions globally, Reuters said.