Tag Archives: direct reduced iron

BHP, BlueScope and Rio Tinto to investigate Australia low-carbon steelmaking options

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Australia’s two largest iron ore producers, Rio Tinto and BHP, and its biggest steelmaker, BlueScope, have partnered in their efforts to accelerate the decarbonisation of steelmaking by agreeing to jointly investigate the development of the country’s first iron making electric smelting furnace (ESF) pilot plant.

Under a new framework agreement, the companies will consolidate the work each party has completed to date, leveraging both BHP’s and Rio Tinto’s deep knowledge of Pilbara iron ores with BlueScope’s operating experience in ESF technology.

The collaboration provides a platform to develop and potentially invest in a pilot facility and aims to demonstrate that production of molten iron from Pilbara ores is feasible using renewable power when combined with direct reduced iron (DRI) process technology, they said. If successful, it could help open a potential pathway to near-zero greenhouse gas emission-intensity operations for steelmakers that rely on Australian iron ore to meet global steel demand.

The parties will assess several locations in Australia for the proposed pilot facility, and will consider factors like supporting infrastructure, available workforce, access to target industry and supply chain partners, and suitability for operational trials. The prefeasibility study work program is expected to conclude at year-end. If approved, the pilot facility could be commissioned as early as 2027.

Rio Tinto Iron Ore Chief Executive, Simon Trott (right), said: “The carbon intensity of iron and steelmaking requires profound change to meet the needs of our planet and our climate objectives. We must find better ways to enable these materials to be made more sustainably through leveraging technology.

“We firmly believe the best way to tackle a challenge of this scale is through collaboration with industry and importantly this new agreement will leverage the more than two years of work we have already completed with BlueScope on this technology. We are excited to add this partnership to the suite of projects we have underway with our customers and suppliers to find better ways to accelerate their efforts to meet their decarbonisation targets.”

Incoming BHP Western Australia Iron Ore (WAIO) Asset President, Tim Day (left), said: “We are thrilled to partner with Rio Tinto and BlueScope to progress what we see as a potential breakthrough in reducing carbon emissions from steel production. Collaborations like this are so important for the success of these technologies and build on our work on blast furnace abatement projects, and our ongoing research and development projects with leading steelmakers, research institutes and technology providers around the world.

“Combining our expertise, we hope to help fast track near-zero emission-intensity pathways for steelmakers using Pilbara ores. Technology pathways compatible with renewable energy and scalable to the order of hundreds of millions of tonnes of steel production would be a major step forward in setting up Pilbara ores, and the world, for a low greenhouse gas emission future.”

BlueScope Chief Executive Australia, Tania Archibald (centre), said: “We have a clear vision for BlueScope in Australia as a vibrant, modern and sustainable manufacturer with a clear role to play in enabling Australia’s energy transition. Building a pathway to low emission-intensity iron and steelmaking in Australia is a key priority for our business. We’re excited to be partnering with Rio Tinto and BHP to explore the decarbonisation of the ironmaking process, and leverage the natural advantages of Australia – namely our iron ore resources and the abundant potential for renewable energy.

“We believe DRI is the most prospective technology to decarbonise our Australian business, and the development of ESF technology is key to unlocking Australia’s unique advantages in this decarbonisation journey – and, more importantly, has the potential for wider adaptation across the global steel industry. We believe that this collaboration where we can contribute BlueScope’s unique experience in operating an ESF will be key to cracking the code for Pilbara ores in low emission-intensity ironmaking.”

Metso backs DRI Smelting Furnace tech with investment in pilot facility

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Metso says it is expanding its testing capabilities by investing €8 million ($8.7 million) to build a state-of-the-art DRI (direct reduced iron) smelting furnace pilot facility.

The pilot plant will be constructed in Pori, Finland, where Metso has one of its major R&D centres serving the minerals and metals industry. The new facility will allow customer-specific, pilot-scale testing to demonstrate the applicability and results of industrial-scale DRI smelting with Metso’s Outotec® DRI Smelting Furnace technology.

Jyrki Makkonen, Vice President, Smelting at Metso, said: “Currently, the iron and steel industry accounts for about 8% of the global carbon dioxide emissions. With the tightening environmental regulations, the industry is looking for new innovations to reduce its carbon footprint. There has been a lot of interest towards the recently launched Metso’s Outotec DRI Smelting Furnace. It substitutes traditional blast furnaces used in iron and steel making, and enables a significant reduction of emissions, when combined with a direct reduction plant.”

Mari Lindgren, Director, Smelting Research & Development at Metso, said: “The investment into the DRI Smelting Furnace pilot facility supports the rapidly increasing customer demand for reliable testing when planning a transition to emissions-free smelting. With the pilot facility, we can reliably test various types of customer materials for industrial scale-up. The construction of this unique facility has started, and we expect to run the first tests and campaigns in the latter part of 2024. Currently, we are serving our customers with smaller scale laboratory tests.”

The new high-capacity Outotec DRI Smelting Furnace, launched in 2022, is one of Metso’s breakthrough technologies and a major Planet Positive solution to support decarbonizing the iron and steel industry.

Combined with a direct reduction plant, Metso’s Outotec DRI Smelting Furnace substitutes traditional blast furnaces in the production of hot metal, making it an optimal solution for primary steel producers aiming for a significant reduction in their CO2 emissions with minimal changes to the rest of the steel plant, Metso says. The furnace can be integrated with Metso’s hydrogen-based Circored™ process or other direct reduction processes.

BHP and HBIS Group exploring alternate electrified pathways of steel production

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BHP has signed an agreement with China’s HBIS Group Co Ltd (HBIS), one of the world’s largest steelmakers, to trial direct reduced iron (DRI) production and use of BHP iron ores in blends and progress a separate enhanced lump stage 2 trial aimed at lowering blast furnace (BF) carbon emissions.

To support the development of alternate electrified pathways of steel production for a wider range of iron ores, under this new agreement, the parties aim to trial commercial-scale DRI production using BHP iron ores in blends at HBIS’s newly commissioned DRI plant and then evaluate the performance of the DRI in downstream steelmaking steps. The DRI plant uses hydrogen-rich gas by-products in the steel works to convert ore into a metallic iron product that is further refined for steel.

Additionally, the enhanced lump stage 2 trial will focus on the existing BF steelmaking route, with the aim of reducing carbon emissions by increasing the use of direct charge lump and reducing the need for agglomerated feed which requires fossil fuel energy.

BHP’s latest collaboration agreement with HBIS will tap into the investment of up to $15 million over three years proposed by BHP and HBIS in an earlier Memorandum of Understanding (MoU) signed in 2021.

BHP’s Chief Executive Officer, Mike Henry, said: “HBIS Group is a key partner to BHP and an industry leader in assessing and demonstrating a range of potential pathways to reduce GHG in steelmaking. Our work with customers like HBIS Group, together with our own actions, aims to accelerate progress in reducing greenhouse gas emissions right along the value chain.”

BHP’s Chief Commercial Officer, Vandita Pant, said: “I am delighted to build on our existing partnership with HBIS Group, one of the world’s largest steelmakers and an important customer for BHP’s high quality Pilbara iron ores. DRI is an important element of our pathways to near-zero-emission steel production and in the decarbonisation journey of the steel industry.

“We are working with HBIS Group to demonstrate the use of BHP iron ores in DRI production trials. Together with other collaborations we have underway, including electric smelting furnace (ESF) development, the outcomes are expected to provide pathways to reduce carbon emissions from steel production using BHP’s products.”

This new agreement expands on the work streams laid out in the 2021 MoU between the parties and proceeding announced since; phase 1 research and development work announced in 2022 – in conjunction with HBIS and University of Science and Technology Beijing, a recently completed enhanced lump stage 1 trials at one of HBIS’s plants in Hebei province, and the most recent CCUS pilot trials announced in March this year.

HBIS Chairman, Yu Yong, said: “HBIS and BHP are aligned in their aims to help develop greener, low-carbon solutions that can reduce emissions in steelmaking, leveraging on our long-standing and trusted relationship that we have forged over several years. The agreement signed today is another landmark following our substantive cooperation in areas such as CCUS, and highlights HBIS’s efforts to build a low-carbon raw material supply chain.

“HBIS looks forward to strengthening our comprehensive strategic synergy with BHP in the sustainable development of steel in the years ahead.”

BHP and Hatch commence design study for an electric smelting furnace pilot

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BHP and global engineering, project management and professional services firm, Hatch, have signed an agreement to design an electric smelting furnace pilot (ESF) plant in support of a decision to construct this facility in Australia.

The facility will aim to demonstrate a pathway to lower carbon dioxide (CO2) intensity in steel production using iron ore from BHP’s Pilbara mines for BHP’s steelmaking customer, BHP says.

The small-scale demonstration plant would be used to collaborate with steel producers and technology providers to generate and share learnings with the aim of accelerating scale up of ESF plant designs.

The pilot facility would be intended to test and optimise production of iron from the ESF, a new type of furnace that is being developed by leading steel producers and technology companies targeting low CO2 emission-intensity steel. The ESF is capable of producing steel from iron ore using renewable electricity and hydrogen replacing coking coal, when combined with a direct reduced iron (DRI) step. Estimates show that reductions of more than 80% in CO2 emission intensity are potentially achievable processing Pilbara iron ores through a DRI-ESF pathway, compared with the current industry average for the conventional blast furnace steel route, BHP says.

The ESF allows for greater flexibility in input raw materials, addressing a key barrier to wider adoption of other lower CO2 emissions production routes, such as use of electric arc furnaces which are designed for scrap steel and high grade DRI only. The ESF also has the potential to be integrated into a steel plant’s existing downstream production units.

The pilot facility will enable deeper and more accurate insights into the performance of this technology for converting iron ores into molten iron and steel. Planned test programs will help de-risk further investment in commercial scale projects, thereby complementing development plans of BHP’s steel customers. This scale-up approach has been utilised by other industry demonstrations such as Sweden’s HYBRIT project, BHP added.

BHP and Hatch will assess several locations in Australia for the proposed facility based on supporting infrastructure, technology skills and the availability of local partnerships to build and operate the facility.

BHP’s Chief Commercial Officer, Vandita Pant, said: “We see the ESF process as a critical breakthrough in significantly reducing the carbon emissions intensity of steel production and one that provides an opportunity for iron ore from our Pilbara mines. The steel industry has identified the ESF as a viable option to use a wider range of raw materials and steel companies globally are looking to build commercial-scale ESF plants as part of their CO2 emission reduction roadmaps.”

BHP’s Group Sales and Marketing Officer, Michiel Hovers, said: “Hatch is a key partner in carbon emissions reduction initiatives across the world. We are pleased that we can collaborate with Hatch, alongside BHP’s existing customer and research partnerships, to further progress the development of pathways towards a lower GHG emission footprint for the steelmaking industry. The ESF technology is very exciting and potentially very relevant for reducing the carbon emissions intensity of steel production and provides new and exciting opportunities for our Pilbara iron ore and our customers.

“BHP and Hatch have collaborated on steel technology and design for reducing GHG emissions from over several years, including the ESF and in collaboration with steel producers, and this project is a natural progression in our partnership.”

Hatch’s Managing Director for Bulk Metals, Joe Petrolito, said: “Hatch is excited to collaborate with BHP on this forward-looking initiative and is honored to contribute to the efforts of an industry leader who is dedicated to driving tangible progress. This project marks a significant milestone in the pursuit of decarbonisation within a challenging sector that underpins global infrastructure and progress.”

Metso Outotec to develop hydrogen-based DRI pilot plant in Germany

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Metso Outotec says it will convert its existing 700 mm circulating fluidised bed (CFB) pilot plant in Frankfurt, Germany, for hydrogen-based direct reduction of fine ore as it looks to further drive down carbon emissions associated with the iron-making part of steel production.

The company will apply its Planet Positive Circored™ technology as part of this process, with the pilot plant able able to be used for the reduction of high-grade iron fines concentrate and to confirm the design basis for an industrial-scale Circored plant.

Commissioning of the plant is expected to take place by December 2023.

Parizat Pandey, Director, Direct Reduced Iron (DRI) at Metso Outotec, said: “The investment enables us to pilot the reduction of low-grade iron concentrate fines in larger quantities than what we do today, and, subsequently, perform downstream fines DRI electric smelting tests for hot metal production.

“The Circored processing route used in the process offers the lowest possible carbon footprint in the iron-making segment of an integrated steel plant.”

Once operational, the 700 mm pilot plant will be able to continuously produce 150-200 kg/h of direct reduced iron, using 100% hydrogen as the sole reducing agent, Metso Outotec claims. The pilot plant will have an integrated pre-heating and reduction section, followed by a gas cleaning and recirculation facility.

The investment includes installation of electric heaters in the process, making it an almost zero-carbon-emission plant, according to the company. Further, the data obtained from the use of electric heaters will be used to scale up the design of industrial heaters capable to running on renewable energy.

The Circored process is based on the fluidised bed knowledge and experience developed and applied by Metso Outotec over decades in hundreds of plants for different applications. The process applies a two-stage reactor configuration with a CFB followed by a bubbling fluidised bed downstream. The typical plant capacity is 1.25 Mt/y per line. Two or more lines can be combined using joint facilities and utility areas. In standalone plants, the produced DRI is briquetted to hot briquetted iron to enable further handling and safe transport.

If a Circored plant is integrated into an existing steelmaking facility, energy efficiency can be further increased by direct hot feeding of the DRI to an electric arc furnace, according to Metso Outotec.

Metso Outotec launches direct reduced iron smelting furnace to further decarbonise steel sector

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Metso Outotec is launching the innovative DRI (direct reduced iron) Smelting Furnace to, it says, substitute blast furnaces used in iron and steel making.

The DRI Smelting Furnace is one of Metso Outotec’s key solutions for decarbonisation of the iron and steel industry, which currently produces about 8% of the global carbon dioxide emissions.

Jyrki Makkonen, Vice President, Smelting at Metso Outotec, said:“The DRI Smelting Furnace is a true breakthrough technology. It will help the iron and steel industry to reach their CO2 emission reduction targets and limit global warming. The new high-capacity 6-in-line DRI Smelting Furnace is part of Metso Outotec’s Planet Positive offering, which is focused on environmentally efficient technologies.”

Kimmo Vallo, Product Manager, DRI Smelting Furnace at Metso Outotec, said: “Combined with a direct reduction plant, the DRI Smelting Furnace will substitute blast furnaces in the production of hot metal. This is an optimal solution for primary steel producers aiming for a significant reduction in their CO2 emissions with minimal changes to the rest of the steel plant. The furnace can be integrated with Metso Outotec’s hydrogen-based CircoredTM process or other direct reduction processes.”

Timo Haimi, Senior Sales Manager, Smelting, added: “The DRI Smelting Furnace enables the use of easily available blast furnace-grade iron ore instead of DRI-grade iron ore by managing bigger slag volumes than what scrap melting electric arc furnaces (EAF) are capable of.”

DRI Smelting Furnace technology is based on existing Metso Outotec equipment. The furnace and related products are complete and ready for implementation, according to the company. Customer-specific pilot-scale testing will be conducted in the Metso Outotec research facilities to demonstrate large-scale DRI smelting.

The company said: “DRI smelting technology development continues to further optimise the process for customer-specific feed materials and to complement Metso Outotec’s Planet Positive offering for decarbonisation of the iron and steel industry.”

Metso Outotec’s DRI Smelting Furnace provides the following benefits:

  • Flexible for any DRI feed;
  • High productivity with capacity above 1.2 Mt/y;
  • Continuous production of hot metal with high availability and long campaign life;​
  • Capable of handling large slag volumes;
  • Possibility to change slag chemistry to achieve high iron yields and good-quality slag;
  • Minimal changes to existing steel plant; and
  • Furnace off-gas can be used as energy or in a carbon capture and storage process.

Metso Outotec helps steel sector decarbonise with next gen Circored process

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Metso Outotec says it is introducing the next generation of its CircoredTM process for the direct reduction of iron ore fines using hydrogen as a reducing agent instead of CO produced from fossil fuels.

This new process will allow the iron and steel industry to efficiently tackle the decarbonisation challenge, according to the company.

The flexible Circored process, part of Metso Outotec’s Planet Positive portfolio, produces highly metalised DRI (direct reduced iron) or HBI (hot briquetted iron) that can directly be used as feed material in electric arc furnaces for carbon-free steelmaking.

Attaul Ahmad, Vice President, Ferrous and Heat Transfer at Metso Outotec, said: “We are very excited about the Circored process. It is an emissions- and cost-efficient alternative to traditional steelmaking routes. This innovative process eliminates the need for costly and energy intensive pelletising, and its functionality and performance have been proven in an industrial-scale demonstration plant.

“Now our team of experts has evolved the process further, and we will present the updated technology at the 2021 Dubai Steel & Raw Materials Hybrid Conference on December 8th. Additionally, during the first (March) quarter of 2022, we will be revealing further ground-breaking additions to Circored capabilities – the key word being low-grade ore – so please stay tuned for these exciting developments.”

The Circored process is based on the fluidised bed knowledge and experience developed and applied by Metso Outotec over decades in hundreds of plants for different applications. The process applies a two-stage reactor configuration with a circulating fluidised bed followed by a bubbling fluidised bed downstream. The typical plant capacity is 1.25 Mt/y per line. Two or more lines can be combined using joint facilities and utility areas. In standalone plants, the produced DRI is briquetted to HBI to enable further handling and safe transport.

If a Circored plant is integrated into an existing steelmaking facility, energy efficiency can be further increased by direct hot feeding of the DRI to an electric arc furnace, according to Metso Outotec.

As a general rule, the Circored process can handle feeds with a particle size of up to 2 mm. However, depending on the decrepitation behaviour, particle sizes of up to 6 mm are possible. For processing ultrafine (< 50 µm) ores or process reverts like scrubber dust, Metso Outotec has patented a microgranulation process.

ArcelorMittal Mining Canada to add flotation columns at Port-Cartier as part of DRI pellet move

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ArcelorMittal Mining Canada is investing in a project using a new flotation system at its Port-Cartier pellet plant in Quebec, Canada, that will allow it to convert its 10 Mt/y pellet production to direct reduced iron (DRI) pellets by the end of 2025.

The announcement was by ArcelorMittal and the Government of Quebec at COP26 in Glasgow, Scotland, this week.

The C$205 million ($165 million) investment, in which the Quebec government will contribute through an electricity rebate of up to C$80 million, will enable the Port-Cartier plant to become one of the world’s largest producers of DRI pellets, the raw material feedstock for ironmaking in a DRI furnace, ArcelorMittal said.

The implementation of the flotation system (see graphic below) will enable a significant reduction of silica in the iron ore pellets, facilitating the production of a very high-quality pellet, according to the company. It will also include new tailings and concentrator thickeners and new additives for the grinding process.

“The project will deliver a direct annual CO2e reduction of approximately 200,000 t at AMMC’s Port-Cartier pellet plant, equivalent to over 20% of the pellet plant’s total annual CO2e emissions,” the company added. This reduction in CO2e emissions will be achieved through a reduction in the energy required during the pelletising process.

A DRI plant uses natural gas to reduce iron ore, resulting in a significant reduction in CO2 emissions compared with coal-based blast furnace ironmaking.

In Hamburg, Germany, ArcelorMittal is trialling replacing natural gas with hydrogen to make DRI, with its industrial-scale pilot project anticipated to be commissioned before the end of 2025.

The DRI installations the company has announced it is developing in Belgium, Canada and Spain are all being constructed to be hydrogen-ready, so as and when green hydrogen is available in sufficient quantities at affordable prices the company can produce DRI with near zero-carbon emissions.

Approximately 250 jobs are expected to be created during the construction phase of the project in Port-Cartier, which is scheduled to be begin mid-2023 and complete before the end of 2025.

Quebec Premier, François Legault, said: “We are positioning our regions at the heart of the green economy of tomorrow. My message to companies looking for a place to reduce their greenhouse gas emissions is come and see us. We’ll help you carry out your projects promptly. Quebec is the best place in the world to invest in the green economy. To build together a greener, more prosperous and prouder Quebec.’’

Aditya Mittal, ArcelorMittal CEO, said: “This project has an important role to play in our efforts to reduce our group’s CO2e emissions intensity by 25% by 2030, and our longer-term ambition to reach net zero by 2050. Not only does it deliver a significant reduction in our emissions at AMMC, but it also expands our ability to produce high-quality DRI pellets, which we will need in significant volumes as we transition to DRI-EAF steelmaking at our steel plants in Canada and Europe.

“I am grateful to Premier Legault and his government for the support it is providing in realising this project. It is the first significant decarbonisation project we have announced for our mining business and fitting that we are able to make this announcement at COP26 as it exemplifies the transformational change we need to deliver this decade as we move towards becoming a carbon-neutral business.”

Mapi Mobwano, CEO, ArcelorMittal Mining Canada, added: “This investment will see us become one of the biggest direct reduction pellet producers in the world, thereby propelling ArcelorMittal Mining Canada into the forefront of mining and steel decarbonisation. From 2025 onwards we will have the capacity to produce 10 Mt of very high-quality iron oxide pellets, with low silica content and high iron density, which will be highly strategic in the years ahead.”

Rio Tinto and BlueScope to test clean hydrogen use at Port Kembla Steelworks

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Rio Tinto says it and BlueScope are to work together on exploring low-carbon steelmaking pathways using Pilbara iron ores, including the use of clean hydrogen to replace coking coal at BlueScope’s Port Kembla Steelworks, in Australia.

The two companies have signed a Memorandum of Understanding (MoU) to research and design low-emissions processes for the steel value chain, including iron ore processing, iron and steelmaking and related technologies.

Rio Tinto and BlueScope will prioritise studying the use of green hydrogen at the Port Kembla Steelworks to directly reduce Pilbara iron ores into a product that could then be processed in an electric melter to produce metallic iron suitable to be finished into steel, it said.

The MoU expands the partnership between the two companies, who were already jointly studying technology to reduce carbon emissions from existing iron and steelmaking processes. It will also allow more projects to be added as technologies mature, according to Rio.

Rio Tinto Iron Ore Chief Executive, Simon Trott, said: “This partnership will benefit from BlueScope’s experience and know-how in using electric melters at its New Zealand steelworks, Rio Tinto’s experience in the Atlantic direct reduction market and the R&D capability and the experience of both Rio Tinto and BlueScope in iron ore processing.

“It is early days, but given both BlueScope and Rio Tinto are committed to net zero carbon emissions by 2050, we realise we need to investigate multiple pathways and strike partnerships across the steel value chain.”

BlueScope Chief Executive, Mark Vassella, said: “We are pleased to be working with Rio Tinto, who supply the majority of iron ore to our Port Kembla plant. It’s a natural fit for us both and a meaningful opportunity for Australian steelmaking and mining to explore ways of contributing to emissions reduction targets.

“This is an important program – one which will need broad support from governments, regulators, customers and suppliers. At a time when there is much talk and expectation about climate, this is an example of two significant Australian businesses getting on with real action. We are putting our dollars and our people right on the front line of addressing climate change.”

The first phase of the collaboration will be to determine the scale of a pilot plant to be based at the Port Kembla Steelworks, consisting of a hydrogen electrolyser, direct reduction process and melter.

At an investor seminar last week, Rio said it was focused on studying three potential pathways towards net neutral steelmaking; using sustainable biomass with Pilbara iron ore to replace coking coal in the iron and steelmaking process; using hydrogen-based hot-briquetted iron with high-grade ores in Canada; and using hydrogen direct reduced iron with a melter for Pilbara ores.

This MOU aligns with the last potential pathway and shows Rio Tinto’s commitment to each of them, the miner said.

At the same investor seminar, it announced new targets of reducing its Scope 1 & 2 carbon emissions by 50% by 2030, more than tripling its previous target, and a 15% reduction in emissions by 2025, five years earlier than previously. These targets are supported by around $7.5 billion of direct investments to lower emissions between 2022 and 2030.

Rio’s IOC to supply high-grade iron ore for low-carbon steel feedstock project

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Rio Tinto, Paul Wurth SA and SHS-Stahl-Holding-Saar GmbH & Co (SHS) have signed a memorandum of understanding to explore the production of a low-carbon steel feedstock.

This partnership brings together a leading global miner, an international leader in the design and supply of engineering solutions for integrated steelmakers and one of Europe’s best-known steelmakers, Rio said.

The partnership will explore the viability of transforming iron ore pellets into low-carbon hot briquetted iron (HBI), a low-carbon steel feedstock, using green hydrogen generated from hydro electricity in Canada.

Iron Ore Company of Canada (IOC), in which Rio Tinto holds a majority interest, will supply high-grade iron ore and expertise in mining, processing and pelletising. Paul Wurth brings expertise in plant building and process knowledge in the field of highly efficient hydrogen generation and MIDREX® direct reduction plants. SHS brings iron- and steelmaking expertise.

Rio Tinto’s significant presence in the Canadian provinces of Quebec and Newfoundland and Labrador makes Canada a natural location for the project, it said.

“Canada provides access to cost competitive hydro electricity, and proximity to key markets in Europe and North America,” the company said. “Transforming high-grade iron ore pellets into a low-carbon steel feedstock using green hydrogen, when processed in an electric arc furnace with carbon free electricity, has the potential to reduce significantly the carbon emissions associated with steelmaking.”

The parties will conduct a feasibility study into the potential development of industrial-scale low-carbon iron production in Canada, using the combined expertise of the three partners across the entire steel value chain. The feasibility study is scheduled for completion in late 2021, with an investment decision on a hydrogen-based direct reduction plant at industrial scale expected to follow thereafter.

IOC President and CEO, Clayton Walker, said: “This partnership is part of Rio Tinto’s climate strategy to pursue proactive and action-oriented partnerships to support the development and deployment of low-carbon technologies for hard-to-abate processes like steelmaking.

“We are absolutely committed to being part of the solution on climate change and to support our customers and other stakeholders in the steel value chain as the industry transitions to a low-carbon future.”

Georges Rassel, CEO of Paul Wurth SA, said: “By associating the different players of the metal production chain, we are confident to develop the most appropriate and efficient solutions for this challenging transition towards a carbon-neutral industry.”

Martin Baues, Member of the Board of Directors for Technology at SHS-Stahl-Holding Saar, said: “Dillinger and Saarstahl adopted a future-focused strategy with the motto ‘proactive, carbon-free and efficient’. Within this strategy, we have defined various options for the transformation to carbon-neutral steel production. The use of hydrogen in steel production is a key factor in reducing carbon emissions. This partnership can further help us to reduce our carbon emissions on the basis of this technology, while gaining important experience in using hydrogen in steel production.”