The Institute for Energy Economics and Financial Analysis (IEEFA) has stated that Australian miner BHP Billiton continues to focus on carbon capture, utilization and storage to reduce its Scope 3 emissions, which make up 98 percent of its total emissions, despite the growing likelihood that the technology offers limited potential for decarbonizing coal-based steelmaking.
The IEEFA said that, while BHP continues to focus on stalled CCUS technology, its peers, Vale, Rio Tinto, Fortescue and Anglo American, are shifting their emphasis to production of more high-grade iron ore suitable for low-carbon steelmaking in direct reduced iron (DRI)-based steelmaking processes. Vale, Rio Tinto, Fortescue and Anglo American are planning increased production in response to growing demand for DR-grade ore as steelmakers switch to technology that can realistically reduce emissions, while BHP, the only one of the iron ore majors still mining coal, is planning to stick to the production of lower-grade iron ore suitable for coal-based steelmaking in blast furnaces, and metallurgical coal.
According to BHP’s new Climate Transition Action Plan, there are no near zero emissions technologies for iron ore-based steelmaking that are ready for widespread commercial adoption. The IEEFA said that, accordingly, the company risks underestimating the speed with which the steel technology transition will eventuate.
