Vale, a mining company, and Green Energy Park (GEP), a European hydrogen company, have announced a partnership to develop decarbonisation solutions for the global steel sector. This collaboration will focus on feasibility studies for establishing a green hydrogen production facility to supply a future Mega Hub in Brazil, dedicated to manufacturing low-carbon steel products.
The Mega Hub is designed as a collaborative platform that will allow global steel companies to source and produce hot-briquetted iron (HBI) using green hydrogen. This initiative is aimed at accelerating the low-carbon steel industry by leveraging Brazil’s abundant resources, including renewable energy and high-quality iron ore, to produce HBI, a steel pre-material with a significantly lower carbon footprint. When used in Electric Arc Furnaces (EAFs), this process can drastically reduce carbon emissions in steel production, supporting the global transition toward cleaner industrial practices.
Ludmila Nascimento, Director of Energy and Decarbonisation at Vale said, “This is a win-win partnership for Brazil and Europe. We are leveraging Brazil’s competitive advantages, such as high-quality iron ore and abundant renewable energy, to potentially develop green hydrogen supply, which will enable the offer of a ‘green’ HBI with high added value to European steelmakers. Meanwhile, we are fostering Brazil’s new industrialisation, based on the low-carbon economy, and contributing to the fight against climate change.”
Bart Biebuyck, CEO of Green Energy Park, emphasised the importance of this collaboration and said, “The partnership with Vale is a major milestone on our journey to Net Zero. We are proud to work with the largest producer of direct reduction pellets in the world to help decarbonise the steel sector. The collaboration between our companies aims to bring our leading green hydrogen technology to the core of the hard-to-abate sectors, offering a highly competitive platform for green steel production in Europe and around the world. Together, we are looking forward to accelerating the green hydrogen industry in Brazil.”
The iron and steel industry accounts for about 8% of global carbon emissions, primarily due to the heavy reliance on coal in traditional blast furnaces. By using green hydrogen as a reducing agent, carbon emissions in steel production can be reduced by up to 80%, lowering emissions from 2.0 tons of CO2 per ton of steel to just 0.4 tons of CO2. This transition is critical to meeting global carbon neutrality goals by 2050.
In addition to the green hydrogen facility, the partnership will explore the deployment of electrolysers, the design of industrial plants for green hydrogen production, and other renewable hydrogen applications across the steel value chain. Green Energy Park will contribute its expertise in electrolyser technology and industrial construction to reduce costs and scale up production.
