Vale says it has reached a non-binding heads of agreement with Kobe Steel and Mitsui & Co to establish a new venture to supply low CO2 iron metallics and iron-making solutions to the steel industry.
The heads of agreement establishes the preliminary terms and conditions for the creation of a new venture with the objective of delivering low CO2 metallics to the global market, providing new technological solutions to its clients, Vale said.
“An evaluation period has already begun to deepen the cooperation and to gauge market demand for several existing and new steel-making solutions prior to a final agreement for the creation of the NewVen,” it added.
Steel production, part of Vale’s Scope 3 emissions, while essential for people’s daily lives, generates considerable CO2 emissions. “Vale is committed to contribute with its steel-making clients in this challenge of reducing their carbon footprint,” it said.
The new venture will use existing and new low-CO2 iron making technology such as Tecnored®️ technology and the MIDREX®️ Process.
Tecnored is a 100%-owned Vale subsidiary focused on developing a low carbon pig iron process through the use of energy sources, such as biomass, syn-gas and hydrogen, that emits less CO2 than the traditional coal and coke iron-making process. Using biomass, the path to economic carbon neutrality may be achieved in the medium term, according to Vale.
MIDREX Technologies, a 100%-owned Kobe Steel subsidiary, is a world leading direct reduction ironmaking (DRI) technology. Each year, MIDREX plants produce more than 60% of the entire world’s DRI (example above) and more than 80% of the DRI produced by all shaft furnace technologies. Since it uses both natural gas and hydrogen as a reductant in the process, its CO2 emission level is much less than compared with a blast furnace.