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illuminem summarizes for you the essential news of the day. Read the full piece on IEEFA or enjoy below:
🗞️ Driving the news: BHP’s new Climate Transition Action Plan (CTAP) focuses heavily on carbon capture and storage (CCUS), drawing criticism for lagging behind competitors in the shift to low-carbon steel technologies
• Peers like Vale and Rio Tinto are prioritizing high-grade iron ore production for green hydrogen-based direct reduced iron (DRI) steelmaking
🔭 The context: While BHP continues to supply lower-grade iron ore and metallurgical coal for blast furnaces, competitors are investing in more sustainable steel production methods
• Critics argue that BHP’s reliance on CCUS may underestimate the speed of the steel industry’s transition to low-carbon solutions
🌍 Why it matters for the planet: As steel production contributes heavily to global emissions, BHP’s slower pivot to greener technologies could delay the industry’s decarbonization efforts, which are crucial for meeting climate goals
⏭️ What's next: With hydrogen-based DRI technology expected to scale up by 2026, BHP risks falling behind as demand for coal-based steelmaking declines faster than anticipated
💬 One quote: "Technology transitions have a habit of happening faster than expected," said Simon Nicholas, IEEFA’s Lead Analyst
📈 One stat: BHP’s Scope 3 emissions, primarily from its customers’ steelmaking processes, account for 98% of its total emissions
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