BHP says blast furnace decarbonisation depends on carbon capture and hydrogen integration
BHP has outlined its latest strategy for reducing emissions from conventional steelmaking, arguing that deep decarbonisation of blast furnace operations will depend on the integration of carbon capture, utilisation and storage (CCUS), top gas recycling and low-carbon hydrogen rather than a rapid replacement of existing steel production assets.
In a new industry insight, the mining giant said blast furnaces are expected to remain the dominant method of global steel production for decades due to the long operational life of existing facilities, limited availability of high-quality scrap, constraints on renewable electricity and hydrogen supply, and the scarcity of iron ore suitable for direct reduced iron (DRI) production.
According to BHP, while efficiency improvements, higher-quality raw materials and process optimisation could reduce blast furnace carbon intensity by around 20%, achieving emissions reductions of up to 80% will require more advanced technologies, particularly carbon capture and top gas recycling.
The company said blast furnace gas, which is already reused within integrated steel plants to generate heat and electricity, still contains valuable carbon monoxide and hydrogen that can be recycled back into the ironmaking process after carbon dioxide has been removed. This process, known as top gas recycling, reduces the need for additional coke and coal while improving furnace efficiency.
BHP highlighted demonstration projects including the European ULCOS programme and China Baowu’s HyCROF technology, which have reported carbon intensity reductions of between 24% and 37% before the addition of carbon storage. When combined with carbon capture and storage, these technologies could reduce emissions by more than 60%, with further reductions possible through additional post-combustion carbon capture and renewable energy integration.
The company also noted that post-combustion carbon capture offers another route to emissions reduction by capturing CO₂ from the combustion of blast furnace gases used to generate power, steam and heat across steelworks. Although this approach draws on commercially proven technology from other industrial sectors, BHP acknowledged that carbon capture remains capital-intensive and requires supporting transport, storage and regulatory infrastructure before large-scale deployment becomes commercially viable.
BHP said collaboration across the steel industry will be essential to accelerate deployment of these technologies. The company is working with several global steelmakers and technology providers, including ArcelorMittal, HBIS, Mitsubishi Heavy Industries, Mitsubishi Development and Carbon Clean alongside JSW Steel, to trial carbon capture technologies, improve process integration and support studies into shared CO₂ transport and storage infrastructure.
The miner said its partnerships are designed to reduce technical risk and generate operational data that can support wider commercial adoption of CCUS across the steel sector.
BHP reiterated that the blast furnace-basic oxygen furnace route currently accounts for more than 70% of global steel production and is expected to remain central to steelmaking as countries such as India continue expanding production capacity. The company believes modified blast furnace technology, incorporating hydrogen injection, top gas recycling and carbon capture, represents one of the most practical pathways to significantly lowering emissions while maintaining reliable primary steel production.
The company said its ongoing research and partnerships form part of its broader strategy to support lower-carbon steelmaking through multiple technology pathways while continuing to supply higher-quality iron ore and steelmaking coal to customers pursuing emissions reductions.
