Coal burning issue in new steel deal

SATURDAY, SEPTEMBER 28, 2019 themercury.com.au SUBSCRIPTIONS 1300 696 397 RIO Tinto says its new partnership with China’s biggest steelmaker will study using hydrogen rather than coking coal to make greener steel.

The move by Rio to support research into finding an alternative to coking coal in the steel making process adds to the growing work in the area, which raises long-term questions about the future of one of the nation’s largest export earners.

Rio chief Jean-Sebastien Jacques said the miner’s agreement with China Baowu Steel Group and Tsinghua University, announced this week, would include studying how to use hydrogen as a steel making ingredient in order to slash its carbon emissions.

“That (hydrogen) is definitely within the scope of the work that will be carried out through this partnership in the coming months and years,” Mr Jacques said.

Baowu Steel formed a partnership with China National Nuclear Corporation and Tsinghua University at the start of the year to investigate using nuclear power and hydrogen in steel making.

The partnership aims to create an “ultra-low emission” steel industry.

Mr Jacques said part of Rio’s partnership with Baowu Steel would be to provide assistance on the work it was already carrying out in this area.

Shipping switching from fuel oil to gas was likely to be another area targeted.

“We are going to look through the entire supply chain, from mining, shipping, steel making and potentially processing of steel as well,” Mr Jacques said.

Steel is made by smelting iron ore with coke made from coking coal in massive blast furnaces. Making steel accounts for between 7 and 9 per cent of the globe’s total carbon emissions. Hydrogen can play the same role as coke but only releases water during the manufacturing process.