- BlueScope Steel (BSL) and Rio Tinto (RIO) will research low-carbon steelmaking avenues while using iron ore from the Pilbara
- The first stage of the plan includes producing a low emission iron feed and using hydrogen produced from renewable electricity
- The companies have previously paired up to research emission-reducing technology within iron ore processing and steelmaking
- Rio Tinto finished the week down 2.66 per cent to $90.29 per share, while BlueScope Steel was down 1.1 per cent to $20.62 per share
BlueScope Steel (BSL) and Rio Tinto (RIO) have agreed to collaboratively research low-carbon steelmaking avenues while using iron ore from the Pilbara.
A primary step in the pursuit of greener steel production is replacing coking coal with renewable hydrogen.
According to a statement from Rio, studying the use of hydrogen will take place at BlueScope’s Port Kembla Steelworks facility.
The first stage of the plan includes producing a low emission iron feed and using hydrogen produced from renewable electricity.
The second phase will “explore the development of projects involving iron ore processing and technologies directed at reducing carbon emissions from existing iron and steelmaking processes.”
Rio Tinto Iron Ore chief executive Simon Trott said both companies had a focus on producing lower emissions and greener steel.
“We are excited to sign this MOU with leading steelmaker BlueScope, a key customer of ours in Australia, and extend our partnership to low carbon iron and steelmaking,” Mr Trott said.
“It is early days, but given both BlueScope and Rio Tinto are committed to net-zero carbon emissions by 2050, we realise we need to investigate multiple pathways and strike partnerships across the steel value chain.”
The companies had previously paired up to research emission-reducing technology within iron ore processing and steelmaking.
The announcement comes after BlueScope unveiled a $150 million fund for research on climate action.
BlueScope CEO Mark Vassella said pairing up with Rio Tinto was an organic partnership.
“This is an important program — one which will need broad support from governments, regulators, customers and suppliers,” said Mr Vassella,
“At a time when there is much talk and expectation about decarbonisation, this is an example of two significant Australian businesses getting on with real action.”
Rio Tinto finished the week down 2.66 per cent to $90.29 per share, while BlueScope Steel was down 1.1 per cent to $20.62 per share.