A new report from the Institute for Energy Economics and Financial Analysis (IEEFA) claims that the appointment of Brandon Craig as BHP's new CEO provides the company with an opportunity to review its strategy regarding steel and metallurgical coal production technologies.
According to the report, BHP lags behind other major iron ore producers in supporting steel decarbonization, despite recording 378 million tons of Scope 3 emissions in fiscal year 2025. While the company recognizes its role in supporting low-emission steel production, IEEFA stated that BHP continues to prioritize attention is paid to technologies that expand the use of blast furnace iron ore and metallurgical coal.
BHP's focus on CCUS
IEEFA identified BHP's continued support for carbon capture, utilization and storage (CCUS) in blast furnace steel production as evidence of its current strategy. The report contrasts this approach with the approaches of Rio Tinto, Vale and Fortescue, which are more focused on direct iron reduction (DRI) technologies and high-grade iron ore suitable for DRI production.
According to the report, no CCUS industrial facilities are currently operating in the metallurgical production of coal-based steel. The IEEFA attributed the limited adoption of the technology to high costs, relatively low carbon capture rates, transportation issues, and uncertainty related to long-term carbon storage. The organization also noted that the International Energy Agency
