Luxembourg-based plantmaker Paul Wurth has announced that it has signed a memorandum of understanding with Australia-based miner Rio Tinto and German steel producer SHS Stahl Holding Saar GmbH&Co. KGaA to explore the production of a low-carbon steel feedstock.
The partnership will explore the viability of transforming high-grade iron ore pellets into low-carbon hot briquetted iron, a low-carbon steel feedstock, using green hydrogen generated from hydro-electricity in Canada. This has the potential to reduce carbon emissions significantly.
Iron Ore Company of Canada (IOC), in which Rio Tinto holds a majority interest, will supply high-grade iron ores and expertise in mining, processing and pelletizing. Paul Wurth brings expertise in plant building and process knowledge in the field of highly efficient hydrogen generation and Midrex® direct reduction plants. SHS brings deep iron and steel making expertise.
The parties will conduct a feasibility study into the potential development of industrial scale low-carbon iron production in Canada. The feasibility study is scheduled to be completed in late 2021, with an investment decision on a hydrogen-based direct reduction plant at industrial scale expected to follow thereafter.
