SYDNEY -- Australian mining heavyweight BHP has agreed with China Baowu Steel Group to develop technologies for lowering greenhouse gases, with plans to spend up to $35 million under a five-year partnership.
When a blast furnace uses coal-derived coke to extract iron from ore, large quantities of carbon dioxide are released. To limit this, BHP and Baowu will research and develop technologies for carbon capture, utilization and storage. Carbon dioxide from Baowu steel mills could be sequestered underground, for example.
The two companies will also cooperate on developing a process that substitutes hydrogen for coke, resulting in net zero emissions.
Their memorandum of understanding "further strengthens our longstanding relationship with China Baowu and reflects our joint determination and commitment to help reduce emissions in line with the Paris Agreement goals," BHP CEO Mike Henry said in a news release.
BHP competitor Rio Tinto decided in 2019 to cooperate with Baowu on new ways to reduce carbon emissions. European steelmakers ArcelorMittal and ThyssenKrupp are developing production technology to cut carbon as well.
