BHP lifts steel consumption forecast on surging demand from renewable power farms

The Melbourne, Australia-based miner forecasts surging demand for wind and solar farm equipment to boost steel demand by 2% in 2030 and by 4% in 2050.

The miner expects global steel consumption to increase by 42 million tonnes and 76 million tonnes in 2030 and 2050, respectively, with a sizeable chunk due to demand for solar and wind power equipment.

The world’s steel production stood at 1.95 billion tonnes in 2021, according to the World Steel Association.

BHP Group is one of the biggest iron ore producers in the world. Iron ore, the most important ingredient in making steel, brought in nearly half of the miner’s fiscal 2022 revenue.

A global push towards the decarbonisation of power generation comes as the world grapples with an energy crisis even as the improved cost efficiency and competitiveness of renewable energy has attracted massive investment as well as favourable policies globally.

Clean energy investment is expected to exceed $1.4 trillion in 2022, accounting for almost three-quarters of the growth in overall energy investment, the International Energy Agency said in its World Energy Investment 2022 report released in June.