We’re working to support industry to develop steel production technology capable of 30 per cent lower greenhouse gas (GHG) emissions intensity relative to conventional blast furnace steelmaking by 2030.
We’re collaborating with eleven steelmakers – representing around 22 per cent of the world’s reported steel production – on a range of projects to support this goal.1
To reduce emissions intensity at scale, we need to find pathways to reduce GHG emissions from conventional blast furnace steelmaking, which currently represents 70 per cent of global steel production.
We are pursuing a portfolio of projects, and have co-invested in, Direct Reduced Iron pathways (including the Electric Smelting Furnace), innovative electrolysis-based technology, and blast furnace emissions reduction (including carbon capture).
The total of current committed and planned funding from us and our estimate of committed or anticipated funding and in-kind contributions from our strategic partners from FY2020 to FY2029 in support of steelmaking GHG emissions intensity reductions is approximately US$420 million, based on available information and our assumptions as set out in our Climate Transition Action Plan 2024 (CTAP).2
In recent years, BHP has increased its exposure to commodities that we anticipate being in demand due to the trends that will shape the world for decades to come, including decarbonisation and electrification, urbanisation and a growing global population.

Copper for electrification of transport and energy networks. Potash to underpin our food security through more sustainable land use. And more iron ore and steelmaking coal for use in steelmaking, to develop our cities and build renewable energy and other infrastructure.

Greenhouse gas (GHG) emissions from steelmaking represent the majority of BHP’s reported Scope 3 emissions inventory. This presents an opportunity for BHP to work with our steelmaking customers to support them to develop steel production technology capable of producing less GHG through the value chain.

As detailed in our 2024 Climate Transition Action Plan, we have a medium-term goal to support industry to develop steel production technology capable of 30 per cent lower GHG emissions intensity relative to conventional blast furnace steelmaking by 2030. And we have a long-term goal of net zero Scope 3 GHG emissions by CY2050. Achievement of this goal is uncertain, particularly given the challenges of a net zero pathway for our customers in steelmaking, and we cannot ensure the outcome alone.

BHP’s steel decarbonisation framework

For the world to decarbonise and still produce the steel needed to meet the demands of increasing urbanisation, population growth and energy transition infrastructure, widespread deployment of near zero emissions3 steelmaking technology is going to be needed.

Near zero emissions steel can be produced from scrap metal today in an Electric Arc Furnace (EAF). However, production is limited by the availability of scrap and, as such, we expect ore-based steel production to continue to be a vital part of the steelmaking industry.

Today, integrated steelmaking via blast furnaces is the predominant steelmaking processing route, representing approximately 70% of global production. While this route has evolved to become more energy efficient over time, it remains GHG emissions intensive. But because of its widespread use and a young blast furnace fleet in steelmaking regions such as China or India, reducing emissions in the blast furnace processing route where available, must be a part of the roadmap towards decarbonisation.

It is with this in mind that we have developed our steel decarbonisation framework.

The pathways towards steelmaking decarbonisation

Four process routes, in our view and as represented in the pathways that our customers are investigating, offer potential for developing into a feasible pathway for producing near zero emissions steelmaking with sufficient flexibility, scalability and efficiency to support widespread adoption. The four process routes are:

Blast furnace
Direct reduced Iron (DRI) - Electric arc furnace (EAF)
Direct reduced Iron (DRI) - Electric smelting furnace (ESF)
Electrolysis
The blast furnace is the only one of the four pathways that relies on steelmaking coal as an input, while the other three pathways require significant volumes of low or zero GHG emissions electricity, and the gradual replacement of natural gas with hydrogen in the DRI process step.

Estimates of the typical GHG emissions intensity in the end state for decarbonisation in the four process routes are shown in the following diagram

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https://www.bhp.com/news/bhp-insights/2024/10/pathways-towards-steelmaking-decarbonisation