Vale has signed a Memorandum of Understanding (MoU) with POSCO in which both agreed to pursue opportunities to develop ironmaking solutions focused on reducing CO2 emissions.
Vale and POSCO intend to develop solutions for decarbonisation in ironmaking and are under discussion to find the most suitable pathways by using Vale’s wide range of product portfolio, they said. This includes its high-grade iron ore products such as pellets, fines and briquettes, as a potential solution for reducing fossil fuel consumption and aim to help POSCO on its roadmap to reach carbon neutrality in its integrated steel production process by 2050.
Marcello Spinelli, Vale’s Executive Vice President, Iron Ore, and Hagdong Kim, POSCO’s Head of Steel Business Unit, attended the MoU virtual signing ceremony on November 4, 2021.
As per his speech, Spinelli said: “The decarbonisation pathway definition will be critical to set how the industry will meet Paris Agreement’s targets and deliver an important legacy to society and our planet. Vale is well positioned to lead the industry with our high-quality and world-class portfolio, and with innovative technologies.”
Kim added: “Both companies have the goal to achieve carbon net-zero by 2050, an important social responsibility that we must fulfil as members of society. Instead of trying alone, if we work together, we will create more synergy. By signing the MoU, I look forward to greater synergy between Vale and POSCO toward carbon neutrality.”
This initiative contributes to achieving Vale’s commitment to reduce 15% of net Scope 3 emissions by 2035. Additionally, Vale seeks to reduce its absolute Scope 1 and 2 emissions by 33% by 2030 and achieve neutrality by 2050, in line with the Paris Agreement.