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Vale and Hydnum Steel to develop iron ore briquette plant

Published by , Editorial Assistant
Global Mining Review,

Vale and Hydnum Steel have signed a Memorandum of Understanding (MoU) to develop low carbon solutions for steelmaking.

The agreement includes jointly evaluating the possibility of building a collocated iron ore briquette plant in Hydnum Steel's flagship project for green steel in Puertollano, Spain. The plant will begin producing 1.5 million t of rolled steel in 2026, and it is projected to have an annual capacity of 2.6 million t starting from 2030.

“Joining Hydnum in this project is another important step towards our target of reducing our scope 3 emissions in the value chain by 15% by 2035. The combination of our innovative and low carbon briquette, together with the green steel produced by Hydnum, will support our goal of reaching zero emissions in the steelmaking process,” said Rogério Nogueira, Vale’s Director of Product and Business Development.

Fernando Pessanha, Chief Strategy Officer of Hydnum Steel, has emphasised, “the importance of having partners like Vale, who share the same values that drive us to build a new industry, committed to the planet and free from emissions. Hydnum Steel contributes to an inexorable technological shift in the global steel industry. It shows that producing high-quality green steel is not only competitive but also beneficial for the future of our planet.”

Hydnum Steel will be built with next-generation technology designed to replace the use of fossil fuels with green hydrogen, thereby contributing to the decarbonisation of the sector. For Vale, this MoU reinforces its confidence on hydrogen usage to enable steelmaking decarbonisation.

This is also a signal of clients’ engagement with Vale’s strategy of offering innovative solutions to decarbonise the sector. Vale has signed agreements to jointly study decarbonisation solutions with more than 50 clients, who account for around 35% of the company’s scope 3 emissions. Some of these solutions include the building of briquette plants next to the clients’ facilities.

The briquette is a product developed by Vale in its technology centre in Brazil. It is produced from the low-temperature agglomeration of high-quality iron ore using a technological solution of binders, which gives the final product high mechanical strength. It can be used as a metallic source in the direct reduction route, enabling the production of green steel. It can also be used in the blast furnace, reducing CO2 emissions by 10%. In addition to its commitment to reduce 15% of net scope 3 emissions by 2035, Vale seeks to reduce its absolute scope 1 and 2 emissions by 33% by 2030 and achieve net zero by 2050, in line with the Paris Agreement, leading the way to sustainable mining.

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Vale mining news Iron ore mining news European mining news