CCUS hub study to accelerate decarbonisation across Asia’s steel sector

A consortium of major industrial players, including ArcelorMittal Nippon Steel India, JSW Steel, Hyundai Steel, BHP, Chevron, and Mitsui, has launched a joint pre-feasibility study to assess the development of regional Carbon Capture, Utilisation and Storage (CCUS) hubs across Asia. The study, the first of its kind to be initiated independently by industry actors in the region, aims to identify scalable pathways for decarbonising hard-to-abate sectors—particularly steelmaking.

The consortium will examine the technical, commercial, and regulatory frameworks required to support shared CCUS infrastructure, including the potential for transporting captured carbon dioxide (CO₂) to storage sites within Asia or northern Australia. The concept foresees hub-based models where emissions from multiple industrial sources could be aggregated to reduce per-unit costs and facilitate investment in utilisation and storage solutions.

Each participating company is expected to contribute to at least one regional hub. The study, managed by Hatch in collaboration with the Global CCS Institute, McDaniel, and Pace CCS, will deliver conceptual strategies, preliminary cost estimates, and commercialisation options. It will also address regulatory and policy enablers, including frameworks for cross-border CO₂ transport.

For the steel sector—responsible for a significant share of industrial emissions in Asia—the development of viable CCUS infrastructure is viewed as a potential transitional measure while long-term technologies continue to mature. In the words of BHP Vice President for Sustainability Marketing, Ben Ellis, “With more than one billion tonnes of blast furnace steel capacity in Asia still early in its lifecycle, the industry must advance technologies that decarbonise existing assets alongside the development of future solutions.”

Several participating companies view CCUS as a necessary component of their net-zero strategies. JSW Group, for example, has committed to reducing its steelmaking emissions intensity by 42% by 2030 (compared to 2005 levels) and sees CCUS as a critical lever to meet this target. Hyundai Steel emphasised the need for international collaboration to drive practical, measurable results in a sector that remains among the most technically challenging to decarbonise.

For Mitsui & Co., which has set a target of 30% emissions reduction by 2030 and net-zero by 2050, the CCUS study represents a step toward enabling large-scale CO₂ mitigation across the industrial landscape. Chevron and other energy partners view the initiative as part of a broader effort to apply CCUS technologies across the value chain in hard-to-abate sectors.

The study is scheduled to conclude by the end of 2026. The consortium intends to share key findings publicly to support wider industry learning and inform policy development across the region.

While carbon capture remains controversial in some policy circles, its inclusion in several global climate scenarios—and its technical maturity in certain applications—make it a continued area of focus for industrial decarbonisation. The Asia-focused CCUS study reflects growing interest in collaborative models that aim to reduce the cost, complexity, and risk of implementation.

Source and Photo: BHP