Steel Authority of India Limited (SAIL), the largest state-owned steel producer in India, has partnered with global resources giant BHP to advance decarbonisation in steelmaking. The collaboration was formalised with the signing of a Memorandum of Understanding (MoU), marking a significant step towards reducing carbon emissions in India’s steel sector, particularly through the blast furnace (BF) production route.
The MoU focuses on exploring various potential pathways to decarbonise SAIL’s integrated steel plants, which rely on blast furnaces for steel production. Both parties are evaluating strategies to cut greenhouse gas (GHG) emissions. These include investigating alternative reductants such as hydrogen and biochar for use in blast furnaces, aiming to foster local research and development (R&D) capabilities that will support the sector’s decarbonisation journey.
Given that the steel industry accounts for a substantial share of global carbon emissions, SAIL and BHP’s joint effort could set the stage for technological breakthroughs. Decarbonising blast furnaces is seen as essential for transitioning India’s steel industry—along with the global steel sector—toward sustainable production practices over the mid to long term. This partnership exemplifies the importance of collaboration in addressing the industry’s environmental impact.
Amarendu Prakash, Chairman of SAIL, expressed optimism about the collaboration: “SAIL is looking forward to this partnership with BHP as a step toward developing sustainable steel production methods. The steel sector’s alignment with climate commitments is non-negotiable, and SAIL is dedicated to contributing towards mitigating climate change through fostering an innovative future for the steel industry in India.”
BHP’s Chief Commercial Officer, Rag Udd, echoed similar sentiments, emphasising the long-standing relationship between BHP and SAIL: “We are pleased to extend and strengthen our relationship with SAIL to explore decarbonisation opportunities in blast furnace steel production. Decarbonising the industry is a challenge that no company can tackle alone. This collaboration will help leverage shared expertise and resources to support the development of technologies that can significantly reduce carbon emissions, both in the short and long term.”
The initiative comes at a crucial time when the global steel industry is under increasing pressure to align with global climate goals.
