New Delhi: A significant Memorandum of Understanding (MoU) has been signed between Steel Authority of India Limited (SAIL), India’s largest state-owned steel producer, and BHP, a leading global resources company. This partnership aims to advance collaboration towards the decarbonisation of steelmaking processes.
BHP is a leading global resources company with approximately 80,000 employees and contractors, primarily in Australia and the Americas. BHP’s products are sold worldwide, and it is among the world’s top producers of major commodities, including iron ore, copper, nickel, and metallurgical coal.
The agreement represents a crucial step in promoting low-carbon steelmaking technologies for the blast furnace route in India. Under the MoU, SAIL and BHP are currently exploring various initiatives aimed at reducing greenhouse gas emissions at SAIL’s integrated steel plants that utilize blast furnaces.
The workstreams under consideration include the potential use of alternative reductants such as hydrogen and biochar, which are essential for building local research and development capacity in line with decarbonisation efforts.
The adoption of advanced technologies and the improvement of existing blast furnace operations are pivotal for driving decarbonisation in both the Indian and global steel industries over the medium to long term. Such collaborations are vital for achieving these objectives.
Commenting on the partnership, SAIL Chairman Amarendu Prakash stated, “SAIL views this collaboration with BHP as a significant step towards the future of sustainable steel production. The need to align the steel sector with climate change commitments is imperative. SAIL is dedicated to fostering an innovative future for the steel industry in India.”
BHP’s Chief Commercial Officer, Raag Ud, added, “We are pleased to deepen our longstanding relationship with SAIL to explore decarbonisation opportunities for the blast furnace route. Tackling this challenge requires collective effort. By leveraging our shared expertise and resources, we can adopt new technologies and enhance our capabilities to significantly reduce our carbon footprint.”
