Brazilian iron ore major Vale has partnered with Green Energy Park (GEP) to carry out feasibility studies on the development of a major green hydrogen production facility that could supply a large-scale low-carbon steel industrial complex.
It comes under Vale’s ‘Mega Hubs’ concept where it plans to produce hot briquetted iron (HBI) and other steel products with significantly less carbon dioxide (CO2) emissions than traditional techniques.
In its Brazilian hub, the firm plans to produce iron ore agglomerates – HBI feedstock – with green hydrogen as the reducing agent.
Vale says, that by producing HBI with green hydrogen and electric arc furnaces (EAFs), it could reduce the CO2 emissions of steel production by 80% to 0.4 tonnes of CO2 per tonne of steel.
By partnering with GEP, which is already developing a 10.8GW green hydrogen and derivative facility in Piaui, Brazil, Vale hopes to attract global steel companies looking to source low-carbon HBI.
The new partners, which will be supported by Europe’s Global Gateway programme, also plan to collaborate on other aspects across the hydrogen value chain, including the design of industrial green hydrogen plants and industrial applications for the energy carrier.
GEP said it plans to implement electrolyser technologies on a “standardised production platform” to drive down green hydrogen costs.
“This is a win-win partnership for Brazil and Europe,” claimed Ludmila Nascimento, Director of Energy and Decarbonization at Vale.
“We are leveraging Brazil’s competitive advantages, such as high-quality iron ore and abundant renewable energy, to potentially develop green hydrogen supply, which will enable the offer of a green HBI with high added value to European steelmakers.”
Vale has already been stepping up its involvement in green hydrogen-based steel production. Last year, it signed an agreement to supply iron ore pellets to Stegra’s (previously H2 Green Steel) inaugural green steel plant in Sweden.
Read more:Rio Tinto and Vale to supply H2 Green Steel with iron ore
GEP CEO, Bart Biebuyck, said the collaboration with Vale would offer a “highly competitive platform” for green steel production “in Europe and around the world.”
Having revealed plans at year, GEP intends to produce green hydrogen and derivatives in Brazil for export to Croatia.
In November 2023, the project secured €2bn of funding in Global Gateway investment.
Read more:EU backs 10GW Brazilian hydrogen project for export to Croatia
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