CSN, Shell and ITOCHU sign MoU for cooperation on decarbonisation

Companhia Siderúrgica Nacional (CSN), Shell and Itochu Corporation have signed a Memorandum of Understanding (MoU) for cooperation on decarbonisation. Within the scope of this MoU, teams have been formed. They will proceed with investigations of potential projects, partnerships, and carbon reduction initiatives, in addition to defining areas of possible strategic long-term business collaboration to contribute to achieving its climate and environmental goals.

The statement said the bond between iron ore miner CSN, Shell, and Itochu, “companies recognised for their commitment to bold decarbonisation goals and actions, reinforces the thesis that collaborative action with the participation of agents from different sectors is one of the most effective tools for tackling climate change.”

ITOCHU owns Brazilian iron ore mining interests (Casa de Pedra- CdP Mines) together with the CSN Group. A Nikkei Asia report said that part of the collaboration will involve fuelling heavy equipment such as mining trucks with plant-based biofuels produced by Shell plus that the partners will also work to electrify heavy machinery.

“CSN has been looking at ESG & Decarbonisation as strategic levers for business growth and perpetuity. We know that reducing CO2 emissions in the sectors in which we operate is a major challenge, but we are committed to our roadmap and innovation strategy to transform our business. Partnerships like this, with Shell and Itochu, are and will be vital for us to advance towards our goals in the ESG agenda,” says Helena Guerra, CSN’s Director of Sustainability.

Each of the companies will contribute their expertise related to this cooperation process. Shell, for example, will share its knowledge and experience in global decarbonisation and low carbon energy solutions, solution development, partnership structuring, pilots, co-investment opportunities and new commercialisation models. One of ITOCHU’s key roles will be to introduce potential partners that can provide decarbonisation or energy solutions to other parties. CSN will share its knowledge and experience, providing technical know-how, key indicators, priority challenges, and operational information needed in all business segments, with an initial focus on steel and mining.

In the project’s first phase, in addition to the roadmap and portfolio of existing initiatives, CSN will share areas of interest and pain points, and opportunities for synergy between the companies will be identified for the definition of workflows. Opportunities can be pursued in the short term (1-2 years), medium term (2-8 years) or long term (over eight years).

CSN said: “The signed MoU aims to identify and evaluate opportunities in the different phases of our Decarbonisation Journey, thus focusing on winning initiatives with real chances of impact.”