H2 Green Steel is partnering with mining companies Rio Tinto and Vale for the supply of direct reduction iron ore pellets for its green steel production in Sweden.
The companies have signed separate multi-year supply agreement for direct reduction iron ore pellets (DR Pellets) which will account for a significant part of the iron ore supply to H2 Green Steel’s flagship plant in Boden, Sweden.
Additionally, Rio Tinto will purchase and on-sell a part of the surplus low-carbon hot briquetted iron (HBI) produced by H2 Green Steel during the ramp-up of its steelmaking capacity.
“We are partnering across the steel ecosystem to find better ways to support the decarbonization of iron and steelmaking, and to reduce our scope 3 emissions.''
Simon Farry, head of Rio Tinto steel decarbonization
“We are partnering across the steel ecosystem to find better ways to support the decarbonization of iron and steelmaking, and to reduce our scope 3 emissions. Our supply of high-grade iron ore pellets will support the acceleration of H2 Green Steel’s project, and on-selling their low-carbon HBI will enable us to gain a deeper understanding of the future needs of our customers and end users in the emerging green iron and steel market”, said Simon Farry, head of Rio Tinto steel decarbonization.
“Vale has followed the developments of the green transition of the steel industry in northern Sweden closely and now chooses to take an active role in contributing to it.''
Bruno Pina, global sales director at Vale
“Vale has followed the developments of the green transition of the steel industry in northern Sweden closely and now chooses to take an active role in contributing to it. H2 Green Steel is pushing the entire value chain of steel to move faster towards sustainable solutions. By working closely together with them, we show once more our support to the decarbonization of the steel sector. We have committed to reducing our scope 3 net emissions by 15% up to 2035, which means an absolute emission reduction need of more than 80Mt of CO2 emissions. This is equivalent to the emissions from the nation of New Zealand by comparison”, commented Bruno Pina, global sales director at Vale.
"This marks another strategic agreement for H2 Green Steel ….it’s truly impressive to see the engagement outside Sweden for our great project in Boden, stated Henrik Henriksson CEO of H2 Green Steel.
The pellets will be delivered from Rio Tinto’s Iron Ore Company of Canada (IOC), and Vale’s pellet plant in Tubarão, Brazil, to Boden via the Port of Luleå in Sweden.