Vale and Japan’s Nippon Steel have signed a Memorandum of
Understanding (MoU) to pursue ironmaking solutions focused on a carbon-neutral
steelmaking process, the iron ore miner says.
Vale and Nippon Steel intend to
jointly study and explore (i) metallic usage solutions such as direct reduced
iron (DRI) and pig iron produced by Tecnored technology; and (ii) usage of
Vale’s green briquettes in the ironmaking process and other lower carbon
footprint products such as pellets.
This initiative contributes to
Vale’s commitment to reduce net Scope 3 emissions by 15% by 2035. Additionally,
Vale seeks to reduce its absolute Scope 1 and 2 emissions by 33% by 2030 and
achieve net zero by 2050, in line with the Paris Agreement, leading the
evolution process towards sustainable mining.
In April, Vale and the Government
of the State of Pará held an event to mark the beginning of the construction
works of the first commercial plant of Tecnored in Brazil. Tecnored’s
technology allows the production of so-called ‘green pig iron’, by replacing
metallurgical coal with biomass, thus reducing carbon emissions and contributing
to the decarbonisation of the steel industry.
The unit will have an initial
capacity to produce 250,000 t/y of green pig iron, with the possibility of
reaching 500,000 t/y in the future. The start-up is scheduled for 2025 with an
estimated investment of approximately BRL1.6 billion ($342 million).