Helping the steel value chain achieve decarbonization, the two "world's largest" companies hold hands in Shanghai | Cooperation | Global
Baowu Group, the world's largest steel company, and Rio Tinto, the world's largest iron ore producer, have signed a memorandum of cooperation in Shanghai. The two sides will jointly explore a series of new projects in China and Australia, aimed at helping the steel industry value chain achieve decarbonization.
According to the memorandum of cooperation, the two sides will study, build and demonstrate an experimental scale electric melting furnace at the steel plant of Baowu Group to realize the direct reduction iron technology of medium and low grade ore production for low carbon steel production. At the same time, the Australian ore production pellet technology is optimized to provide support for its use as a raw material for the production of direct reduction iron in low-carbon shaft furnaces; the development of Baowu Group's hydrogen-rich carbon cycle oxygen blast furnace technology is expanded, which can significantly reduce the carbon dioxide emissions generated by the blast furnace process. The two sides will also jointly examine opportunities to produce green, low-carbon ironmaking in Western Australia.
Rio Tinto Group's Chief Business Officer and Chairman of China, Bai Ruiming, stated, "Rio Tinto and Baowu Group are jointly committed to accelerating the provision of low-carbon solutions for the entire steel industry value chain. The vast majority of iron ore in the world is of medium to low grade, and this memorandum of cooperation aims to address one of the biggest challenges facing the industry by opening up low-carbon pathways for these iron ores."
Baowu Group stated that Baowu takes "building an industrial ecosystem to promote the progress of human civilization" as its mission, and is willing to work with Rio Tinto to jointly research and propose low-carbon green comprehensive solutions for the steel value chain to help the low-carbon green transformation of the steel industry chain. And upgrade, and support the global active response to climate change with practical actions.
The cooperation between Rio Tinto and Baowu Group has a long history, covering project development, new technology research and deployment in Australia and Guinea, as well as carbon reduction in steel production.