The partnership will involve a $US15 million ($19.6 million) investment by studying a hydrogen-based reduction technology, the reuse of steelmaking slag and role of iron ore lump.
This is the third agreement BHP has signed with a Chinese steelmaker for emissions reduction, as the company previously announced partnerships with China Baowu and JFE to explore emissions reduction in steelmaking.
BHP chief executive officer Mike Henry said a joint effort was necessary to achieve lower emissions.
“BHP has a long and trusted relationship with HBIS Group, and we are pleased to establish this strategic partnership to explore new ways to reduce emissions from steelmaking,” Henry said.
“Global decarbonisation will require collaboration and collective effort, and our work with partners such as HBIS Group will build on our own actions and help reduce emissions right through the value chain.”
The investment with HBIS Group is part of BHP’s climate investment program, which covers projects partnerships and research into the reduction of scope one, two and three emissions.
It is also expected to help achieve China’s goal of becoming carbon neutral by 2060.
BHP chief commercial officer Vandita Pant said decarbonisation would be achieved using multiple solutions.
“We view decarbonisation of the steel industry as a complex puzzle that requires multiple technological solutions across the value chain over different time horizons,” Pant said.
“By forming this third low-carbon steelmaking partnership with HBIS Group, we are focussing on additional components, such as the role our products play in hydrogen-based steel production, that complement our other partnerships and support for endeavours in emissions reduction and capture from the traditional blast furnace route.”