Brazilian mining giant Vale and German steelmaker Stahl-Holding-Saar (SHS) have signed a Memorandum of Understanding (MoU) to jointly develop solutions aimed at accelerating the transition to carbon-neutral steel production.
The partnership focuses on the technical and commercial feasibility of several low-carbon pathways. Key initiatives under the agreement include:
- Green iron ore solutions: Testing the application of Vale’s proprietary green iron ore briquettes and direct reduction pellets within SHS’s steelmaking infrastructure.
- Localised production: Exploring the potential for a dedicated briquette plant located in close proximity to SHS’s manufacturing facilities to optimise the supply chain.
- Innovative technology: Assessing the implementation of Tecnored technology, a modular process designed to produce high-quality pig iron using a wide range of cold-processed raw materials with significantly lower emissions.
This collaboration is a key component of Vale’s broader strategy to reduce its net Scope 3 emissions by 15% by 2035. The miner has been aggressively engaging with its global customer base to tackle value-chain emissions; since 2021, Vale has partnered with roughly 30 ironmaking clients that together account for approximately half of the company’s Scope 3 footprint.
Beyond its partnership with SHS, Vale is working toward an absolute reduction of 33% in its Scope 1 and 2 emissions by 2030, with a final target of reaching net zero by 2050. These goals align with the Paris Agreement and reflect Vale’s commitment to establishing itself as a leader in sustainable mining.
