BHP partners with HBIS Group on decarbonization trials in steelmaking

BHP (ASX: BHP) announced it has signed an agreement with China’s HBIS Group one of the world’s largest steelmakers, to trial direct reduced iron (DRI) production and utilisation of BHP iron ores in blends and progress a separate enhanced lump stage 2 trial aimed at lowering blast furnace carbon emissions. 

To support the development of alternate electrified pathways of steel production for a wider range of iron ores, under this agreement, signed in December, the companies aim to trial commercial-scale DRI production using BHP iron ores in blends at HBIS’s newly commissioned DRI plant and then evaluate the performance of the DRI in downstream steelmaking processes.

DRI is an important element of BHP’s pathways to near-zero-emission steel production and in the decarbonisation jourey of the steel industry, the company said.

The DRI plant uses hydrogen-rich gas byproducts in the steelworks to convert ore into a metallic iron product that is further refined for steel.  

The enhanced lump stage 2 trial will focus on the existing BF steelmaking route, with the aim of reducing carbon emissions by increasing the use of direct charge lump and reducing the need for agglomerated feed which requires fossil fuel energy, BHP said.

Its latest collaboration agreement with HBIS will tap into the investment of up to $15 million over three years proposed by BHP and HBIS in an earlier Memorandum of Understanding  signed in 2021.

 “HBIS Group is a key partner to BHP and an industry leader in assessing and demonstrating a range of potential pathways to reduce GHG in steelmaking,” BHP’s chief executive Mike Henry said in the statement.

“Our work with customers like HBIS Group, together with our own actions, aims to accelerate progress in reducing greenhouse gas emissions right along the value chain.”