The Steel Authority of India Limited (SAIL) and BHP (ASX: BHP) have signed an MoU to promote lower carbon steelmaking technology for blast furnaces in India.

An initial study will be done to assess strategies to reduce greenhouse gas emissions (GHG) after which various workstreams will consider the role of alternate reductants such as hydrogen and biochar use.

These measures have been taken with a view to building local research and development capability to support the decarbonisation transition.

Technology and abatements deployment as well as partnerships are critical to decarbonising India’s and the global steel industry.

SAIL chairman Shri Amarendu Prakash comments on this.

“SAIL is looking forward to this collaboration with BHP in taking a step forward towards engaging in developing sustainable ways to produce steel,” he said.

“The emergent need to align the steel sector with climate commitments is non-negotiable.

“SAIL is committed to contributing towards tackling the issue of climate change through fostering an innovative future for the steel industry in India.”

BHP has identified India has a key growth country for steel and its chief commercial officer Rag Udd says the company has a long-established relationship with SAIL.

“We are pleased to be extending and strengthening this relationship to explore decarbonisation opportunities for the blast furnace route,” he said.

“We recognise that decarbonising this industry is a challenge that we cannot meet alone, and we must come together to leverage shared expertise and resources, to support the development of technologies and capability that could have the potential to create a real change in carbon emissions both now and in the longer term. “

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