- The Steel Authority of India Limited and BHP have signed a Memorandum of Understanding to support steelmaking decarbonisation. - This collaboration promotes lower carbon steelmaking technology pathways for the blast furnace route in India. - The parties are exploring various workstreams to assess strategies for reducing greenhouse gas emissions at SAIL’s blast furnace steel plants. - The workstreams will consider alternative reductants such as hydrogen and biochar, while also building local research and development capabilities. - Technology deployment and abatements on blast furnaces are critical for decarbonising India’s and the global steel industry. - SAIL’s Chairman expressed commitment to developing sustainable steel production methods aligned with climate commitments. - The collaboration is a significant step for BHP to support lower carbon steelmaking in India as part of its Climate Transition Action Plan 2024. - BHP’s Chief Commercial Officer emphasized the importance of collaboration in addressing the decarbonisation challenges in the steel industry.

BHP and SAIL sign MOU to accelerate potential pathways to steel decarbonisation

07 October 2024

The Steel Authority of India Limited (SAIL), the largest government owned steel producer in India, and leading global resources company, BHP, are collaborating to support steelmaking decarbonisation, following the signing of a Memorandum of Understanding (MoU) between the parties. This collaboration is an important step for SAIL and BHP in promoting lower carbon steelmaking technology pathways for the blast furnace route in India.

Under this MoU, the parties are already exploring a number of workstreams supporting the potential decarbonisation of SAIL’s blast furnace steel plants commencing with an initial study to assess various strategies to reduce greenhouse gas emissions (GHG).

These workstreams will consider the role of alternate reductants for the blast furnace such as hydrogen and biochar use, with a view to also building local research and development capability to support the decarbonisation transition. The deployment of technology and abatements on the blast furnace is critical to progress in decarbonising India’s and the global steel industry, in the mid and long term and partnerships are vital in the approach.

Chairman, SAIL Shri Amarendu Prakash commented, “SAIL is looking forward to this collaboration with BHP in taking a step forward towards engaging in developing sustainable ways to produce steel. The emergent need to align the steel sector with climate commitments is non-negotiable. SAIL is committed to contributing towards tackling the issue of climate change through fostering an innovative future for the steel industry in India.”

This collaboration is an important step for BHP in supporting lower carbon steelmaking technology pathways for the blast furnace route in India as a key growth country for steel, building on our program recently published in BHP’s Climate Transition Action Plan 2024.

BHP’s Chief Commercial Officer, Rag Udd, said: “BHP has a long-established relationship with SAIL, and we are pleased to be extending and strengthening this relationship to explore decarbonisation opportunities for the blast furnace route. We recognise that decarbonising this industry is a challenge that we cannot meet alone, and we must come together to leverage shared expertise and resources, to support the development of technologies and capability that could have the potential to create a real change in carbon emissions both now and in the longer term. “