Vale says it has signed a Memorandum of Understanding (MoU) with Jiangsu Shagang Group Co Ltd in which both agree to pursue opportunities to develop steelmaking solutions focused on reducing CO2 emissions.
Vale and Jiangsu Shagang intend to develop economic feasibility studies of (i) usage of products with a lower carbon footprint in ironmaking process, as high-grade iron ore products; and (ii) cooperation on “Tecnored” plants, Vale said.
This initiative contributes to achieving Vale’s commitment to reduce net Scope 3 emissions by 15% by 2035, it said.
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.
Tecnored is a 100% Vale subsidiary focused on developing a low carbon pig iron process through the use of energy sources, such as biomass and syn-gas, that emit less CO2 than the coal and coke the tradition iron-making processes use. Using biomass, the path to economic carbon neutrality may be achieved in the medium term.
Jiangsu Shagang is a Chinese steel producer and service supplier. It has five production sites, which are mainly located in Jiangsu, Liaoning and Henan Provinces.