BHP signs carbon capture and utilization pilot agreement with China steelmaker HBIS

BHP has signed an agreement for piloting of carbon capture and utilization technology with China’s HBIS Group Co., Ltd (HBIS), one of the world’s largest steelmakers and a major iron ore customer of BHP.

As part of this new project, HBIS and BHP will trial pilot-scale demonstrations of carbon capture and utilization technologies at HBIS’ steel operations in China. The trial will develop and test technologies that can be integrated into steel production processes to reduce the CO₂ emissions.

These include Vacuum Pressure Swing Adsorption (VPSA)—an alternative technology to capture CO₂—and two utilization technologies (slag mineralization and biological conversion to protein) to sequester the CO₂.

In addition, BHP will support HBIS in developing and deploying absorptive desulfurization at HBIS ZXHT Hydrogen Metallurgy Demonstration Project in Xuanhua, Hebei, intended to enable the utilization of ~60,000 tonnes per year of captured CO₂ from the Direct Reduced Iron (DRI) process in the food or industrial sectors.

Our multi-faceted partnership with HBIS will now include pilot testing of novel carbon capture technology at their operating sites in Hebei, and builds on the separate carbon capture trial with ArcelorMittal, Mitsubishi Heavy Industry and Mitsubishi Development, announced in October 2022. Hebei province accounts for around 20 percent of China’s reported steel production and represents one of the locations in which we aim to support future carbon capture, utilization and storage initiatives. With our support, HBIS will also be pilot-testing options for the utilization of captured carbon dioxide for the production of saleable products and sequestration in waste slag.

—BHP’s Chief Commercial Officer, Vandita Pant

This new agreement expands on the work streams envisaged in the Memorandum of Understanding (MoU) signed by BHP and HBIS in 2021, together with the Phase 1 research and development work announced in 2022 with HBIS and University of Science and Technology Beijing.

In separate work under the MoU, BHP has also supported HBIS in Enhanced Lump trials, aimed at developing processes for improving direct feed iron ore lump use to achieve incremental reductions in carbon dioxide emissions intensity of steel production, at one of the steelmaker’s plants in Hebei province.

BHP’s latest collaboration agreement with HBIS will tap into the investment of up to US$15 million over three years proposed by BHP and HBIS in the MoU signed in 2021.