China’s largest listed steel company, Baoshan Iron & Steel (Baosteel) has entered into an agreement with Sinopec, Shell and chemical producer BASF for carbon capture, utilization, and storage (CCUS).

Aa a subsidiary of the government-owned China Baowu Steel Group, Baosteel revealed that the consortium will jointly evaluate the feasibility of constructing the first open 10 million metric ton CCUS facility in China.

Through the new initiative, the group aims to provide carbon reduction solutions to industrial enterprises in the Yangtze River region of East China. A low CO2 product supply chain will also be established by the group.

At present, Eastern China has some of the country’s biggest emitters of CO2, accounting for 30% of its overall CO2 emissions. The agreement comes shortly after a memorandum of understanding signed between the companies in November 2022.