Vale and Hydnum Steel signed a Memorandum of Agreement to develop low-carbon solutions for steel production. Hydnum Steel has recently become one of the first steel producers in Europe to use green energy to reduce greenhouse gas emissions. It includes jointly evaluating the possibility of building a joint iron ore briquette facility at Hydnum Steel's flagship project for green steel in Puertollano, Spain. The facility is set to start producing 1.5 million tons of rolled steel in 2026 and is projected to have an annual capacity of 2.6 million tons from 2030.
Vale commissioned its first briquette plant in Vitoria, Brazil, in December 2023. With this, Vale took an important step in its decarbonization and customer base expansion strategy.
According to Vale, the facility can reduce CO2 emissions in the steel industry by up to 10%. Rogerio Nogueira, Vale's director of product and business development, explained that the combination of Vale's low-carbon briquette with Hydnum's green steel will support the goal of achieving zero emissions in the steelmaking process.
Hydnum Steel will be built with next generation technology designed to replace the use of fossil fuels with green hydrogen, thus contributing to the decarbonization of the sector. For Vale, this MoU reinforces its confidence in the use of hydrogen to drive the decarbonization of steel production.
It also marks the involvement of customers in Vale's strategy to provide innovative solutions to decarbonize the sector. Vale has signed agreements with more than 50 customers, which account for around 35% of the company's scope 3 emissions, to jointly explore decarbonization solutions. Some of these solutions include the installation of briquette facilities next to customers' sites.
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