Brazilian iron ore producer Vale and Chinese steelmaker China Baowu Group have signed a memorandum of understanding (MoU) to develop reduced emission steel products, Vale said Thursday.
The announcement came after Vale established other similar MoU agreements with companies like Posco, Mitsui OSK Lines (MOL) and XCMG to develop cleaner solutions for steelmaking, mining, and infrastructure equipment industries.
Vale said this specific MoU agreement includes discussions to produce a biocarbon product to be used at blast furnaces. It would use a carbon neutral material that is based on an undisclosed biomass, instead of fossil fuels.
Discussions also include the possibility of investments by Vale in a biocarbon pilot plant owned by China Baowu. Vale could invest an estimated $10.9 million (CNY 70 million) in the plant, it said.