China Baowu, the world’s largest steelmaker, and Rio Tinto, the world’s largest iron ore producer, have signed a Memorandum of Understanding (MoU) to jointly explore a range of industry-leading projects in China and Australia aimed at decarbonizing the steel value chain. This partnership underscores their commitment to playing a leading role in the industry’s low-carbon transformation.
Under the MoU, China Baowu and Rio Tinto will collaborate on several key initiatives. Firstly, they will research, build, and demonstrate a pilot-scale electric melter at one of Baowu’s steel mills in China. This project aims to enable low-carbon steel production by utilizing Direct Reduced Iron (DRI) derived from low and medium-grade ores. The goal is to reduce carbon emissions associated with steelmaking.
Secondly, the partnership will focus on optimizing pelletization technology for Australian ores, which will serve as a low-carbon feedstock for shaft furnace-based direct reduction. This initiative aims to enhance the efficiency and sustainability of steel production processes.
Additionally, the collaboration will involve expanding the development of China Baowu’s HyCROF technology, which has shown promise in mitigating CO2 emissions from the blast furnace process. This innovative technology has the potential to significantly reduce the environmental impact of steel production.
Furthermore, China Baowu and Rio Tinto will jointly study opportunities for producing low-carbon iron in Western Australia. By exploring alternative methods and leveraging their expertise, the companies aim to advance the development of low-carbon iron production processes.
