Posted on 15 Jun 2023
Fortescue Metals Group (FMG), the world's fourth-largest iron ore miner, signed a Memorandum of Understanding (MoU) on June 13 with its biggest customer, China Baowu Steel Group (Baowu), the world's top steelmaker, to team up to reduce carbon emissions associated with iron and steelmaking, according to a statement from FMG's official website on Wednesday.
FMG is the second iron ore producer after Rio Tinto to partner with Baowu this week on decarbonization in the steel sector, Mysteel Global notes.
Just a day earlier on June 12, Rio Tinto also signed an MoU with Baowu to work together on a slew of new projects to help decarbonise the steel value chain, as reported.
Under this latest MoU, FMG and Baowu will collaborate in "exploring lower emissions in iron making technology at one of China Baowu's operations in China using Fortescue iron ore and green hydrogen, iron ore beneficiation research and development and collaboration opportunities in renewable energy and green hydrogen," the statement elaborated.
"This MoU further strengthens our longstanding partnership with China Baowu, and reflects our collective commitment to eliminate emissions," said FMG's chief executive officer Fiona Hick.
She added that "we firmly believe that collaboration and partnerships such as this will be integral to developing the technologies required to deliver on our ambitious target of net zero Scope 3 emissions by 2040."
Meanwhile, Chen Derong, Baowu's chairman, remarked that "collaboration with iron ore suppliers and enhancing the strategic planning of iron ore are key to Baowu's strategy."
He noted that "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."
Through its decarbonisation roadmap, FMG is working to eliminate the use of fossil fuels and achieve real zero emissions (Scope 1 and 2) across its iron ore operations by 2030. The company remains committed to its stated intent to achieve net zero Scope 3 emissions by 2040 (announced in October 2021), addressing emissions across its entire global value chain, Mysteel Global learned from its website.
Baowu was ranked as the largest steelmaker worldwide for the third consecutive year in 2022 with the total crude steel output at 131.84 million tonnes, up 1% on year, as reported. In early 2021, the steel giant pledged to realize carbon neutral by 2050, or ten years ahead of China's targeted timeline as a country.
Source:Mysteel Global
