Posted on 10 Aug 2023
Rio Tinto and H2 Green Steel (H2GS) have signed a multi-year supply agreement for high-grade direct reduction iron ore pellet from Rio Tinto’s Iron Ore Company of Canada (IOC) operations. Rio Tinto will also purchase and on-sell a part of the surplus low-emission hot-briquetted iron produced by H2 Green Steel during the ramp-up of its steelmaking capacity.
IOC’s DR pellet will account for a significant part of the iron ore supply to H2GS’s plant in Boden, Sweden, the Australian miner says. The plant is scheduled to start operations in 2025.
“This is a significant milestone for our project in Boden. Not only by securing a supply of the high-quality iron ore needed for our green steel production, but also because we have a buyer for a portion of the HBI we initially expect to produce,” H2GS chief executive Henrik Henriksson says in a note seen by Kallanish.
Rio Tinto steel decarbonisation head Simon Farry says: “We are partnering across the steel ecosystem to find better ways to support the decarbonisation of iron and steel making, and to reduce our scope 3 emissions. Our supply of high-grade iron ore pellets will support the acceleration of H2 Green Steel’s project, and on-selling their low-carbon HBI will enable us to gain a deeper understanding of the future needs of our customers and end users in the emerging green iron and steel market.”
Source:Kallanish
