Baogang Group, located in Baotou, plans to build a base to capture, store and utilize 2 million metric tons of carbon dioxide. Phase 1 will be capable of capturing 500,000 tons of carbon dioxide, phase 2 will be capable of capturing 500,000 tons, and phase 3 will be capable of capturing 1 million tons. The first phase of the demonstration project recently started construction. 

Carbon Capture Utilization and Storage (CCUS) is an industrial process that separates carbon dioxide from power plants, steel, cement and other emissions sources either directly or by compressing and liquefying it for utilization and storage to reduce CO₂ emissions. 

The project marks a solid step forward for Baogang Group in peaking carbon emission and achieving carbon neutrality. It will not only help achieve Inner Mongolia autonomous region's carbon emissions reduction goals, but also help China's iron and steel industry in terms of energy conservation, emissions reduction and achieving low carbon emissions.

The first phase of the project is expected to reduce carbon dioxide emissions by 365,300 tons per year, which is equivalent to planting nearly 19 million trees.

Zhang Xin, chairman of Baogang Group Low Carbon Industry Technology Development Co, said that the project uses the latest chemical adsorption technology to capture CO₂ in flue gas. Part of the captured CO₂ will be sent to Baogang for solidification and utilization, while the other part will be compressed and liquefied before being sent to surrounding oil and gas fields by means of low-carbon transportation for technical services related to oil and gas field stimulation so as to achieve the permanent geological storage of CO₂.