Korea: Carbon Neutrality Posco Signs MOU with BHP to Decarbonize Steel Industry
Under the terms of the agreement, Posco and BHP will jointly promote R&D in manufacturing high-strength cokes and utilizing biomass, enhancing the reporting systems for estimating GHG emissions across the entire supply chain, and developing carbon capture, utilization and storage (CCUS) technologies.
Pohang-si/South Korea – Posco will team up with BHP, the world’s largest mining company, for carbon neutrality. Posco signed a MOU with BHP construct a cooperative system on carbon neutrality, starting with joint R&D into reducing carbon emissions in the overall mining and steel industry.
The MOU signing ceremony was held over videoconference with Posco’s Head of Steel Business Unit Hag-dong Kim and BHP’s Chief Commercial Officer, Vandita Pant and related employees.
Posco and BHP decided to promote joint R&D in manufacturing high-strength cokes and utilizing biomass, improving the reporting systems for estimating GHG emissions in the entire supply chain (Scope 3), and developing carbon capture, utilization and storage (CCUS) technologies.
First, both companies agreed to jointly develop technology to reduce coal usage as part of the phased reduction to realize carbon neutrality in 2050. Going beyond the existing method of using coke as fuel, they will reduce coke use by combining it with hydrogen and jointly develop high-strength cokes suitable for this type of fuel. In addition, the two companies will research using eco-friendly biomass materials such as moss and seaweed as steel fuel.
They will cooperate on improving the reporting system for estimating the GHG emissions of the entire supply chain (Scope 3), from the production and transportation of raw materials to the processing of steel products. Based on this, they expect to be able to precisely estimate the current state of carbon emissions for the entire process of steel manufacturing and the possibility of reducing carbon emissions to derive strategies for carbon neutrality across the entire supply chain.
In addition, they will start developing carbon capture, utilization and storage (CCUS) technologies, which prevent carbon from being emitted by capturing, utilizing, and storing it.
The two companies plan to establish a ‘Low carbon project committee’ to give shape to these cooperative areas and provide continuous monitoring. “We expect we can lay an important foundation for carbon neutrality in the overall steel value chain by using Posco’s iron-making technology and BHP’s mining expertise,” said Posco’s Head of Steel Business Unit Hag-dong Kim.