Tata Steel signs MoU with BHP to explore low carbon iron and steelmaking technology in India

~ The MoU reinforces the Company’s commitment to sustainability ~

Tata Steel has signed a Memorandum of Understanding (MoU) with BHP, a leading global resources company, with the intention to jointly study and explore low carbon iron and steelmaking technology.

Under the partnership, Tata Steel and BHP intend to collaborate on ways to reduce the emission intensity of the blast furnace steel route, via two priority areas – the use of biomass as a source of energy and the application of carbon capture and utilisation (CCU) in steel production. The partnership aims to help both companies progress toward their climate change goals, and support India’s ambitions to be carbon neutral by 2070.

The technologies explored in this partnership can potentially reduce the emission intensity of integrated steel mills by up to 30 per cent. More importantly, these projects demonstrate how abatements applied to the blast furnace iron-making process, which contributes to more than 60 per cent of India’s steel production, can materially reduce the carbon intensity of the existing capacity.

Beyond these projects, Tata Steel and BHP have committed to a robust ongoing knowledge exchange that will see both parties explore further collaborations, ecosystems, and business opportunities in the steel value chain and the research and innovation sectors in both India and Australia.

On the partnership, Rajiv Mukerji, Vice President, Group Strategic Procurement, Tata Steel, said: “The steel sector will play a critical role in achieving India’s net-zero commitment. Tata Steel is already working on several pilot projects focussed on the development of deep decarbonisation technologies such as CCU, hydrogen-based steelmaking, use of biomass and other alternate ironmaking routes. We believe strategic collaborations are vital in paving the way for innovations to accelerate the deployment of breakthrough technologies at scale and therefore this partnership with BHP is an important step for us.”

Adding further, Dr. Debashish Bhattacharjee, Vice President, Technology & New Materials Business, Tata Steel, said: Tata Steel strives to be a technology and an innovation leader in the steel industry. By leveraging in-house capabilities and collaborating with research and industrial organisations, Tata Steel aims to build the right ecosystem for accelerating this journey. With sustainability gaining centre stage globally, it is paramount that we take ambitious steps toward exploring sustainable options to mitigate our environmental footprint. We look forward to collaborating with BHP on this journey towards becoming a net-zero company.

BHP’s Chief Commercial Officer, Vandita Pant, said that the partnership with Tata Steel highlights the importance of collaborations in being able to successfully identify and implement emission reduction technologies in steelmaking, notably by using abatements that can be applied to the existing blast furnace process to incrementally reduce its carbon emissions intensity. She also highlighted how BHP can contribute to Tata Steel’s, and the broader steel industry’s role in helping to achieve India’s ambitions to be carbon neutral, particularly as India is expected to see robust steel demand growth over the next three decades, underpinned by a growing population and rising urbanisation.

“India has invested heavily in the blast furnace route for steel production, and crude steel output was 118 MnT last year. It is, therefore, critical to innovate and demonstrate pathways to reduce emissions from the blast furnace steel production route, while alternative steel pathways emerge and low carbon energy systems scale-up.

A greener steel industry will be integral for India’s growth and decarbonisation journey, and we intend to work hard with Tata Steel to enable this development and hopefully set a benchmark for others in the industry to emulate and learn from. Finding pathways to net zero for steelmaking is challenging and complex but we believe that by working with industry leaders like Tata Steel, together, we will find solutions more quickly to help reduce carbon emissions in steel production.” She added. 

Tata Steel and BHP have been heavily involved in establishing partnerships with like-minded industry leaders in reducing emissions in steelmaking. Tata Steel has been actively engaging with technology companies, academia, and companies from other sectors having similar challenges on decarbonisation.

Tata Steel has signed an agreement with Shell India Markets Private Limited to evaluate and co-develop short- and long-term options for improvement in energy efficiency, optimisation of demand around carbon-intensive products and services and others. Additionally, Tata Steel and the Council of Scientific & Industrial Research (CSIR) have signed an MoU to collaborate on CCUS, opening the doors for joint development of advanced technologies with 38 CSIR labs across the country. Tata Steel also signed an MoU with the Indo-German Science and Technology Centre (IGSTC) and the Indian Navy to promote a culture of innovation in the country. Multiple start-ups have been onboarded, and 31 fully funded trials were conducted across the steel value chain in collaboration.

BHP has in recent years partnered with global majors POSCO, China Baowu, JFE Steel and HBIS Group to explore greenhouse gas emissions reduction from steelmaking. The combined output of the five steel companies equates to around 13 per cent of reported global steel production.

About BHP

BHP is a leading global resources company with approximately 80,000 employees and contractors, primarily in Australia and the Americas. BHP’s products are sold worldwide, and it is among the world’s top producers of major commodities, including iron ore, copper, nickel, and metallurgical coal.

Read more about BHP’s approach to climate change: www.bhp.com/climate.

About Tata Steel

Tata Steel group is among the top global steel companies with an annual crude steel capacity of 34 million tonnes per annum. It is one of the world's most geographically diversified steel producers, with operations and commercial presence across the world. The group recorded a consolidated turnover of US $ 32.83 billion in the financial year ending March 31, 2022.

A Great Place to Work-Certified^TM organisation, Tata Steel Limited, together with its subsidiaries, associates, and joint ventures, is spread across five continents with an employee base of over 65,000. Tata Steel has been a part of the DJSI Emerging Markets Index since 2012 and has been consistently ranked amongst top 10 steel companies in the DJSI Corporate Sustainability Assessment since 2016. Besides being a member of ResponsibleSteel^TM, worldsteel’s Climate Action Programme and World Economic Forum’s Global Parity Alliance, Tata Steel has won several awards and recognitions including the World Economic Forum’s Global Lighthouse recognition for its Jamshedpur, Kalinganagar and IJmuiden Plants, and Prime Minister’s Trophy for the best performing integrated steel plant for 2016-17. The Company, ranked as India’s most valuable Metals & Mining brand by Brand Finance, featured amongst CII Top 25 innovative Indian Companies in 2021 and top 10 sustainable organisations of India Hurun Research Institute in the 2021 Capri Global Capital Hurun India Impact 50, received Steel Sustainability Champion recognition from worldsteel for five years in a row, ‘Most Ethical Company’ award 2021 from Ethisphere Institute, RIMS India ERM Award of Distinction 2021, Masters of Risk - Metals & Mining Sector recognition at The India Risk Management Awards for the sixth consecutive year, and Award for Excellence in Financial Reporting FY20 from ICAI, among several others.

To know more, visit www.tatasteel.com and WeAlsoMakeTomorrow

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Statements in this press release describing the Company’s performance may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results may differ materially from those directly or indirectly expressed, inferred or implied. Important factors that could make a difference to the Company’s operations include, among others, economic conditions affecting demand/ supply and price conditions in the domestic and overseas markets in which the Company operates, changes in or due to the environment, Government regulations, laws, statutes, judicial pronouncements and/ or other incidental factors.

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Sarvesh Kumar

Chief, Corporate Communications - Tata Steel

E-mail: sarvesh.kumar@tatasteel.com