The five-year partnership, to be funded under BHP's $400 million Climate Investment Program, will focus on the development of low carbon technologies and pathways capable of emission intensity reduction in integrated steelmaking. Under the MOU, the deployment of carbon capture, utilisation and storage in the steel sector will also be investigated at one of China Baowu's production bases.

BHP and other big miners have come under pressure for not doing more on Scope 3 emissions, or the emissions emitted by its steel-making customers.

BHP CEO Mike Henry said the companies would collaborate on technical solutions to utilise low-carbon fuel sources, such as hydrogen injection in the blast furnace, and explore other low emission options in support of China Baowu and the steel industry's low carbon transformation and green development goals.

"This MoU further strengthens our longstanding relationship with China Baowu and reflects our joint determination and commitment to help reduce emissions in line with the Paris Agreement goals," he said.

"BHP will invest in supporting the development of low emissions technologies, promote product stewardship and partner with others to enhance the global policy and market response to climate change. Our investments are focused on actions that can create real change in emissions."