POSCO Collaborates on Carbon Neutrality with World's Largest Mining Company

POSCO CEO Kim Hak-dong and BHP Marketing and Procurement Head Bandita Pant signed a business agreement to establish a carbon neutrality cooperation system.

[Asia Economy Reporter Choi Dae-yeol] POSCO announced on the 17th that it has signed a business agreement with BHP, the world's largest mining company, to establish a carbon neutrality cooperation system.

Under this agreement, the two companies will jointly conduct research and development to reduce carbon emissions across the mining and steel industries. To gradually reduce carbon emissions, they agreed to develop technology to reduce coal usage together. The plan is to reduce the amount of coke used as fuel, which was traditionally used to remove oxygen from iron ore, by using hydrogen as a fuel alongside coke. They will jointly develop high-strength coke suitable for use with hydrogen.

They also plan to conduct research on utilizing eco-friendly biomass materials such as moss and seaweed as fuel for steelmaking. Additionally, they will work on improving the greenhouse gas emission calculation and reporting system across the entire supply chain, from raw material production and transportation to steel product processing. The company expects to accurately monitor carbon emissions throughout the entire process and identify potential reduction opportunities. Furthermore, they will jointly develop CCUS (Carbon Capture, Utilization, and Storage) technology to capture, utilize, and store carbon so that it is not released into the atmosphere. The two companies will establish a Low-Carbon Project Committee to specify cooperation areas and continuously monitor progress.

The signing ceremony was held via video conference, attended by POSCO CEO Kim Hak-dong and BHP Chief Marketing and Procurement Officer Bandita Pant, among others. BHP is POSCO's largest raw material supplier, providing over 17 million tons annually, including iron ore, metallurgical coal, and nickel. CEO Kim Hak-dong stated, "By leveraging POSCO's steelmaking technology and BHP's mining expertise, we can establish an important foundation for carbon neutrality across the entire steel value chain."