December 7, HBIS and BHP signed an agreement of Carbon Reduction Industrial Experiment in Shanghai. It is dedicated to the shared concept and sustainable development strategy and their joint efforts to explore low carbon raw materials and optimization of iron resources. They will find new ways low carbon development along the supply chain and find a new model on the upper stream of steel industry. This is a new green and low carbon supply chain that HBIS has made with its partners, after BMW and Great Wall Auto.

HBIS Chairman Yu Yong and BHP CEO Mike Henry attended the ceremony. HBIS Vice President Huang Yongjian, BHP Chief Business Officer Vandita Pant, BHP Sales & Market Michiel Hocers attended the event and Huang Yongjian, Vandita Pant signed the agreement representative the both parties.

Lower green gas emission needs alliances of enterprises in steel industry along the industrial chain. In the effort of carbon neutralization, iron ore, the necessary raw materials in steel production, the green and low carbon production of iron is the precondition of low carbon steel products.

Yu Yong said the green & low carbon and sustainable development strategy was the share concept of HBIS and BHPB. After CCUS, the new agreement is a new Iconic and material cooperation that could help HBIS to build a low carbon raw material supply chain. In future, HBIS expects to coordinate its sustainable development efforts with its partners and build classic partnership in the supply chain.

Mike Henry said HBIS was one of key partners of BHP. BHP is also trying to find green house gas reduction technologies and their industrial applications. BHP low carbon actions will be coordinated with HBIS to lower the carbon emissions in the whole industrial chain.

According to the agreement, the partners will explore technologies and their industrial applications. Firstly, Long process resource optimizations: higher lump consumption in BF, and secondly, based on the expansion of iron resources in the short process of hydrogen metallurgy and electric furnace, the proportion of low-grade ore in pellet powder is achieved to reach 20%, taking into account the dynamic balance of carbon reduction and cost reduction, and exploring the application of different iron-containing raw materials in shaft furnace and the influence of direct reduced iron on the smelting effect of electric furnace, so as to further break the bottleneck of hydrogen metallurgical raw materials. The experiments will find low carbon solutions for steel industry.

HBIS and BHP has built a close partnership in carbon reduction, which was launched in March, 2021 with the MOU of Climate Change Strategic Cooperation. In November 2021, the partners signed a Low Carbon Technology R&D Agreement with University of Science & Technology, Beijing to develop low carbon technologies. In March 2023, they signed CCUS Industrial Application Pilot Project In Steel Industry, opening a new chapter of CCUS industrial application. The new agreement will enhance their cooperation to a brand new level and play more important role in the green and low carbon reform.