BHP invests in emissions-free steel

The BHP Group, the world's largest mining company, has invested in a startup company that aims to develop less polluting ways to make steel.

While many in the mining industry outline how they plan to reduce their own direct pollution, these emissions are only a small fraction of those produced by customers, and steel production is one of the largest global sources of emissions. Companies like Rio Tinto Group and BHP have committed to working with the steel industry to help develop new technologies rather than setting hard targets to decrease Scope 3 emissions.

BHP had previously pledged a $400 million research fund to tackle carbon emissions caused by its buyers. The company also said it would tie some of the bonus payments of key leaders to reducing greenhouse gas emissions in both its own operations and those of its customers.

In a statement on Monday, BHP said it was among the investors supporting Boston Metal's $50 million fundraising round. The company, which already counts Breakthrough Energy Ventures, founded by Bill Gates, among its investors, is developing a method to replace coking coal in the steel production process with electricity and reduce emissions.

The statement did not specify how much BHP invested in the financing round. Piva Capital and Devonshire Investors also participated.