German plantmaker SMS group has announced that Compañia Siderúrgica Huachipato S.A. (CSH), the largest steel complex of Chilean mining company CAP Group, and Paul Wurth Italia S.p.A., a company of Germany-headquartered SMS group, have signed a technological cooperation agreement to explore the viability for transitioning CAP steelmaking operations towards the production of low-carbon steel in Chile along the complete value chain.
The parties undertake to jointly conduct a feasibility study for a technological roadmap towards low-carbon steel feedstock. The transition plan aims at setting up immediate measures to reduce the carbon footprint of CSH’s operations by introducing the use of renewable energy and hydrogen combined with highly efficient technologies. This transformation process will lead to a product portfolio for green steel grades.
“As CSH, following CAP Group’s strategy, we are continuously pursuing many innovative adaptations in our company’s business model, with the aim of setting up a sustainable growth strategy where decarbonization, safety, operational excellence and social development are our milestones. From this perspective, CSH will foster initiatives to produce green steel using renewable energies and hydrogen throughout its production value chain,” Rodrigo Briceño, CEO of CSH, said.