China’s Baowu Group takes steps to reduce carbon emissions

China’s Baowu Group is taking steps to reduce carbon emissions as the group’s enterprises implement relevant projects, Kallanish reports.

The Ma’anshan Iron & Steel (Magang) steel plant has started implementing a carbon management system since the end of March 2024, becoming the first part of the Baowu Group to accomplish this task.

Magang’s carbon management system will cover all activities related to this issue, including carbon trading and carbon asset management.

Baosteel Zhanjiang (a subsidiary of Baowu) began construction of a near-zero carbon steel mill in Guangdong Province in April this year. It is expected to be completed by the end of 2025.

Baosteel Zhanjiang plans to invest 4.5 billion yuan ($622 million) in the plant. In particular, the company will be equipped with a 220-ton electric arc furnace (EAF), which will be fed by direct reduced iron and scrap. The company will also use green electricity.

In January 2024, Baosteel Zhanjiang launched a direct reduced iron (DRI) plant in Guangdong province. The plant can produce up to 1 million tons of DRI per year using natural gas, coke oven gas and hydrogen using the Energiron Zero Reformer technology developed by Danieli and Tenova.

Last June, China’s HBIS successfully produced a commercial batch of direct reduced iron using Energiron technology, which enriches coke oven gas with hydrogen by more than 60%. In total, the company plans to expand its hydrogen-based DRI production capacity to 1.2 million tons per year.