SAIL and BHP Partner to Drive Decarbonisation in Steelmaking through New MoU

The MoU highlights several key workstreams aimed at assessing and implementing strategies to reduce greenhouse gas (GHG) emissions.

The Steel Authority of India Limited (SAIL), the country's largest government-owned steel producer, has joined forces with global resources giant BHP to promote decarbonisation in steelmaking. This collaboration is cemented through a newly signed Memorandum of Understanding (MoU) between the two companies, focusing on advancing lower-carbon steel production technologies, specifically for the blast furnace (BF) route used at SAIL's integrated steel plants.

The MoU highlights several key workstreams aimed at assessing and implementing strategies to reduce greenhouse gas (GHG) emissions. These strategies will explore the potential of using alternate reductants such as hydrogen and biochar, as well as building local research and development (R&D) capabilities to facilitate the decarbonisation transition.

This partnership is seen as critical for both the Indian and global steel industries, as they look to adopt more sustainable practices. Blast furnace technology, which is widely used in steel production, plays a significant role in GHG emissions, and deploying new technologies will be essential to achieving climate targets.

SAIL Chairman Shri Amarendu Prakash expressed optimism about the collaboration, noting that the partnership with BHP is a step towards developing sustainable steel production methods. He emphasized SAIL's commitment to aligning with climate goals and fostering innovation within the industry.

BHP’s Chief Commercial Officer, Rag Udd, echoed this sentiment, acknowledging that decarbonising the steel industry is a challenge that requires collaboration. Udd highlighted BHP's long-standing relationship with SAIL and expressed confidence that this partnership will lead to significant progress in reducing carbon emissions in the steelmaking process.

The collaboration marks an important milestone in the steel industry's journey toward sustainability, as both companies work together to develop technologies that can make a tangible difference in decarbonising steel production, both in the near and long term.