H2 Green Steel And Vale In Agreement For The Supply Of Direct Reduction Iron Ore Pellets

10 August 2023

In a multi-year accord, Vale is set to furnish H2 Green Steel with iron ore pellets, serving as essential raw material for its Boden-based steel mill. Vale, a Brazilian mining behemoth, holds the distinction of being the world's largest provider of direct reduction pellets.

"With keen interest, Vale has been tracking the evolution of the steel industry's transition towards sustainability in northern Sweden. Now, we're making a proactive stride towards contributing to this transformation. H2 Green Steel is propelling the entire steel value chain to expedite its transition to sustainable solutions. By forging this close collaboration, we are once again demonstrating our unwavering support for the steel sector's decarbonization journey. We have committed to slashing our scope 3 net emissions by 15 percent by 2035, which translates to a compelling imperative to curtail over 80 million tonnes of CO2 emissions. To offer a perspective, this corresponds to the entire carbon emissions of New Zealand," stated Bruno Pina, Global Sales Director at Vale.

Iron ore in pellet form, coupled with green hydrogen generated from H2 Green Steel's proprietary electrolyzer facility, forms the cornerstone of the critical input materials for the production of green direct reduced iron (DRI). This DRI will be employed to craft nearly emissions-free steel within the Boden-based steel plant. This revolutionary process of directly reducing iron ore through green hydrogen and a fully electrified approach yields an astonishing reduction of up to 95 percent in CO2 emissions, compared to conventional steel manufacturing processes reliant on coal and coke in blast furnaces.

Henrik Henriksson, CEO of H2 Green Steel, hailed this accord as yet another strategic milestone, as Vale's involvement extends beyond the supply of iron ore pellets. Vale brings to the table extensive expertise and profound technical knowledge, paving the way for collaborative decarbonization endeavors. Henriksson remarked, "It's truly remarkable to witness the engagement beyond Sweden for our monumental Boden-based project."

The pellets will traverse from Tubarão in Brazil to Boden, reaching their destination through the Port of Luleå in Sweden.