Vale and SHS will work together on the decarbonisation of steel production

Vale Corporation, Brazil’s largest iron ore producer, and German steelmaker Stahl-Holding-Saar (SHS) will work together to find a solution aimed at the production of carbon-neutral steel. SteelOrbis reports about it.

The companies signed the memorandum of understanding. Among other initiatives, they will explore the use of Vale’s green iron ore briquettes, DR-pellets and Tecnored technology in steel production.

According to a statement from the Brazilian mining corporation, this initiative contributes to the fulfillment of Vale’s commitments to reduce its Scope 3 net emissions (all indirect emissions that occur in the company’s value chain) by 15% by 2035.

From 2021, Vale works with approximately 30 steel customers, which account for approximately 50% of the company’s Scope 3 emissions.

In addition, the Brazilian iron ore producer aims to reduce its Scope 1 and 2 emissions (direct emissions from sources owned or controlled by the company and indirect emissions, in particular from the generation of purchased electricity, respectively) by 33% by 2030. The company plans to achieve carbon neutrality by 2050.

As GMK Center reported earlier, the European Commission has approved an application for €1 billion in public funding to German steel company Salzgitter AG to decarbonise its steel production. The company plans to spend funds on the modernization of existing facilities for the production of carbon-free steel and the construction of a large plant for the production of green hydrogen.

As GMK Center wrote before, South Korean steelmaker POSCO has announced plans to invest $14 billion to reduce carbon emissions. The company plans to build two electric arc furnaces (EAFs), at its plants in Gwangyang and Pohang. They are planned to be launched in 2025 and 2027, respectively.