Brazilian iron ore miner Vale has announced that it has signed an agreement with Sweden-based H2 Green Steel to jointly study the feasibility of developing green industrial hubs in Brazil and North America, enabling sustainable steel production.
In the green industrial hubs, H2 Green Steel will be exploring the production of low-carbon steel value chain products, such as green hydrogen and hot briquetted iron (HBI), using iron ore briquettes produced by Vale as input material and renewable electricity as the energy source for its hydrogen production, while Vale is expected to build and operate briquette plants.
The number of industrial hubs that will be built, their location and production capacity will be defined following feasibility studies to be developed jointly by the two companies.
In August this year, the companies signed an agreement for the supply of direct reduction iron ore pellets, as SteelOrbis previously reported. The pellets will be delivered from Tubarão in Brazil to H2 Green Steel’s Boden plant in Sweden.