China: HBIS subsidiaries to install DRI plants to reduce emissions

China's HBIS subsidiaries - Tangshan Steel and Zhangjiakou Xuanhua Steel - are planning to install direct-reduced iron (DRI) plants at their facilities, in line with the company plans to cut carbon emissions.

Tangshan Steel plans to set up 2 shaft furnaces of 1.3 mnt each while Zhangjiakou Xuanhua Steel plans to install 2 shaft furnaces of 600,000 tonnes each.

On 26 Jan'22, China Iron and Steel Association (CISA) experts attended the video conference with both the companies and made enquiries in relation to the installation of DRI plants. They will give an assessment to ensure that their plans are compliant with the industry guidance.

At present, the draft proposals are submitted to the Department of Industry and Information Technology for consideration.

This is to be noted that the DRI technology is used to produce iron from natural gas or hydrogen in combination with electric furnaces using coke gas as a reducing agent. This technology helps in reducing carbon as well as other emissions.

HBIS Group had rolled out its low carbon metallurgy roadmap in 2021. The group pledges to achieve carbon peak in 2022 and strives to realise 10% carbon emission reduction by 2025 as compared with the peak figure.

Going forward, the steel producer will cut emissions by 30% from the peak figure by 2030 and achieve carbon neutrality by 2050.