The Business Bytes
New Delhi, October 7, 2024 (TBB Bureau): The Steel Authority of India Limited (SAIL), India’s largest government-owned steel producer, has partnered with leading global resources company BHP to accelerate the decarbonisation of steel production. The two industry giants have signed a Memorandum of Understanding (MoU) to explore innovative technologies and strategies aimed at reducing carbon emissions in steelmaking, particularly through the blast furnace (BF) route in India.
The MoU signifies a critical step for both SAIL and BHP in promoting lower-carbon pathways for steel production. The collaboration will focus on identifying and implementing decarbonisation opportunities at SAIL’s integrated steel plants, with an initial study to assess various strategies for reducing greenhouse gas (GHG) emissions.
Key areas of exploration under this partnership include the use of alternative reductants for blast furnaces, such as hydrogen and biochar, as well as building local research and development capabilities to support the transition to greener steelmaking processes. This joint effort aims to address the mid- and long-term challenges of decarbonising India’s steel industry and the global steel sector, where technological innovation and strong partnerships will play a vital role.
Amarendu Prakash, Chairman of SAIL, expressed enthusiasm for the collaboration, stating, “SAIL is looking forward to this collaboration with BHP as a significant step towards developing sustainable methods of steel production. Aligning the steel sector with global climate commitments is an urgent necessity, and SAIL is committed to driving innovation in steel manufacturing to combat climate change.”
Rag Udd, Chief Commercial Officer of BHP, echoed this sentiment, noting, “BHP has a long-standing relationship with SAIL, and we are pleased to extend this partnership to focus on decarbonisation efforts for the blast furnace route. Decarbonising the steel industry is a complex challenge, and we believe that by leveraging shared expertise and resources, we can develop technologies that will have a substantial impact on reducing carbon emissions, both in the short and long term.”
This MoU highlights the growing emphasis on sustainable industrial practices and reinforces the commitment of both companies to shaping a greener future for the steel industry in India and globally.
