Australian iron ore mining company Fortescue has partnered with China Baowu Steel Group Corporation to explore the development of a technology that could reduce emissions associated with iron and steel making.
Under the memorandum of understanding, the two companies will look into the lower emissions iron-making technology at one of China Baowu’s operations in China using Fortescue iron ore and green hydrogen.
The partnership will also explore iron ore beneficiation research and development and collaboration opportunities in renewable energy and green hydrogen.
“This MoU further strengthens our longstanding partnership with China Baowu, the world’s biggest steel maker and Fortescue’s largest customer, and reflects our collective commitment to eliminate emissions,” said Fiona Hick, chief executive officer of Fortescue Metals. “Fortescue is exploring a range of options to reduce emissions in the steel value chain including through partnerships with suppliers, customers and research institutes.
The partnership is also expected to play an important role in Fortescue’s target of net zero Scope 3 emissions by 2040, Hick added.
“Collaboration with iron ore suppliers and enhancing the strategic planning of iron ore are key to Baowu’s strategy. The green and low-carbon transition provides Baowu with significant challenges and development opportunities,” said Derong Chen, chair of China Baowu.
“Fortescue’s strategy of transitioning into a green energy and resources company is aligned with Baowu’s future development plan. We look forward to conducting more substantive collaborations together on iron ore, green energy and resource development.”
Shanghai-based China Baowu is one of the world’s leading steel enterprises, producing over 132 million tonnes of steel in 2022. The company recently revealed its low-carbon metallurgy roadmap, which outlined its commitment to achieving carbon neutrality by 2050.
