BHP has established another working collaboration that aims to cut greenhouse gas emissions from the steelmaking process, this time with Japanese Steel producer JFE Steel.
The mining major is set to invest up to $US15 million ($19.4 million) over the course of the five-year partnership to build on the two companies’ history in research and collaboration.
BHP has previously announced a collaboration with China Baowu and awarded its first LNG-fuelled Newcastlemax bulk carriers contract to reduce emissions by 30 per cent per trip.
Under the new agreement, BHP and JFE will study the ability of Australian raw materials to help reduce emissions from the blast furnace and direct reduced iron (DRI) steel making routes.
The two companies will focus on studying the specific properties of raw materials, particularly iron ore pretreatment, use of enhanced iron ore lump and high quality coke and DRI.
BHP chief commercial officer Vandita Pant said the partnership demonstrated a joint commitment to make their activities more sustainable through collaboration and technological improvement.
“This work will support and help progress Japan’s carbon neutral ambitions by 2050,” she said.
“Our investments are focused on actions that can create real change, and we continue to take positive steps on our climate agenda and in collaborating with others to help reduce emissions in line with the Paris Agreement goals.”
JFE president Yoshihisa Kitano added: “We understand that raw material processing technology is extremely important in the research and development towards carbon neutrality.
“We have a long history working closely together with BHP collaborating to study raw material utilisation technology and mine development.
“It is very significant for us to be able to work together with BHP towards reduction of CO2 emissions, which is an extremely important agenda for the steel making sector.”
The agreement is part of BHP’s $US400 million climate investment program that was formed in 2019.