BHP is ramping up its efforts to decarbonize steel production, targeting a 30% reduction in greenhouse gas (GHG) emissions intensity by 2030, compared to conventional blast furnace methods.

The mining giant is collaborating with 11 steelmakers, representing 22% of global steel production, to explore cleaner steelmaking technologies.

The current focus is on developing pathways for reducing emissions from traditional blast furnace steelmaking, which accounts for 70% of global steel output.

BHP’s commitment includes investments in Direct Reduced Iron (DRI) technology, Electric Smelting Furnaces, and electrolysis-based solutions. The company is also exploring carbon capture technologies to reduce emissions from existing blast furnaces.

BHP has pledged approximately $420 million in total funding, a combination of its own investments and contributions from strategic partners, to support decarbonization initiatives between fiscal years 2020 and 2029.

Dr. Nigel Tame, Head of Technical Partnerships at BHP, emphasized the need for collaboration across the industry. “We can’t achieve this goal alone, but by working with our partners, we can drive the development of technologies that significantly reduce emissions across the steelmaking value chain.”

As part of its broader sustainability strategy, BHP aims for net-zero Scope 3 emissions by 2050, though it acknowledges that this long-term goal remains challenging, particularly for steelmakers.

Nonetheless, BHP sees decarbonization as essential to meeting the rising global demand for steel, which is critical for urbanization, population growth, and the construction of renewable energy infrastructure.

Among the key technologies being trialed is hydrogen-based DRI, which could replace carbon as a reductant in steel production, potentially decarbonizing the process to near-zero emissions. However, Dr. Tame pointed out that more work is needed to optimize the performance of iron ores in these advanced processes, particularly for widespread commercial adoption.

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