With a memorandum of understanding signed (MoU), the parties will share research on several zero-carbon technologies which includes the use of hydrogen-based direct reduction technology.

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With BHP set to invest up to $10m over the next five years to progress zero-carbon steelmaking technologies, hydrogen could gain a significant boost in this sector which could help speed up the adoption of the clean energy carrier.

Vandita Pant, Chief Commercial Officer of BHP, said, “The pathway to net zero for steelmaking is not yet clear but we believe that, by working with industry leaders like POSCO, together we will find solutions more quickly to help reduce carbon emissions in steelmaking and along the value chain.

“BHP recently announced a goal to pursue net zero Scope 3 emissions by 20501 and we are committed to working with industry leaders in steelmaking to address this hard-to-abate sector.

“Steel is a critical product for the world to grow and decarbonise, and we must work hard together to enable greener steel, reducing carbon intensity in the blast furnace and testing new technologies for steel production.”

Hag-Dong Kim, Head of Steel Business Unit at POSCO, said, “Though achieving carbon neutrality is a difficult path ahead, with POSCO working together with BHP’s outstanding mining expertise and the will to achieve a low-carbon future, I have every reason to believe that we can create a significant turning point in carbon emission reduction across our value chain.”