Brazilian steel producer Gerdau and Brazilian state-owned energy company Petrobras have jointly announced that they have inked a two-year non-binding memorandum of understanding (MoU) to collaborate on low-carbon solutions.
Accordingly, the pair aims to explore and develop commercial opportunities and potential partnerships on decarbonization projects, low-carbon fuels, hydrogen and its byproducts, carbon capture, utilization and storage (CCUS), and natural gas-based direct reduction for steelmaking.
The Brazilian steel producer aims to reduce its carbon intensity to 0.82 mt per metric ton of steel by 2031, from the current 0.91 mt per metric ton of steel.
“Partnerships like this contribute to the development of technologies and initiatives that aim for a low-carbon economy, creating avenues of opportunity for the decarbonization of the steel industry,” the joint statement read.