Posted on 07 Sep 2023
H2 Green Steel has signed an agreement with Brazilian mining major Vale to jointly study the feasibility of setting up green industrial hubs in Brazil and North America.
In those potential centres, H2 Green Steel says it is exploring the production of low-carbon steel value chain products, including green hydrogen and hot briquetted iron (HBI), by using iron ore briquettes produced by Vale.
Vale, under a previous agreement, is planned to supply H2 Green Steel’s green steel plant in Boden, Sweden, with iron ore pellets – one of the two, alongside green hydrogen, feedstocks for the direct reduction of iron.
Within the Brazilian hubs, Vale is expected to build and operate briquette plants which will feed direct reduction reactions for the production of HBI and other metallics.
The number of hubs, their locations and production capacity will be defined through feasibility studies.
“We see great potential in Brazil as a hub for low-carbon steel products,” said Marcello Spinelli, Vice-President of Iron Ore Solutions at Vale. “The country offers conditions such as high-quality iron ore and great availability of renewable energy, including wind and solar, supporting the production of green hydrogen.”
Furthermore, the latest agreement is hoped to reinforce Vale’s role as a drive of the Brazilian low-carbon industry.
“With this agreement, we are in Brazil partnering with a green iron and steel producer that is at the forefront of global decarbonisation, while fostering the low-carbon industry and stimulating the green hydrogen chain in the country,” said Vale’s President, Eduardo Bartolomeo.
Kasja Ryttberg-Wallgren, Executive-Vice President Growth and Hydrogen Business at H2 Green Steel, said, both Brazil and North America have great potential in decarbonising the steel value chains due to renewable resources, iron ore and political support.
“It’s a great opportunity for us to explore our partnership with Vale beyond the pellet supply to our flagship plant in Boden,” she added.
The Swedish firm has made strides in establishing the Boden plant in recent months. Having broken ground at the site which is expected to boast 700MW of electrolysis capacity to contribute to the production of five million tonnes of green steel per year, the company has also signed offtake agreements with major industrial players.
In July (2023), it signed a seven-year binding agreement with automotive supplier ZF, valued at €1.5bn ($1.6bn).
Source:H2 View
