H2 Green Steel and Vale sign agreement for supply of direct reduction iron ore pellets

H2 Green Steel has entered an agreement for the supply of direct reduction iron ore pellets with Vale to its steel plant in northern Sweden.

In a multi-year agreement, Vale will supply H2 Green Steel with iron ore pellets as input material for its steel mill in Boden. Vale is a Brazilian mining company and the world’s largest supplier of direct reduction pellets.

“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 percent up to 2035, which means an absolute emission reduction need of more than 80 million tonnes of CO2 emissions. This is equivalent to the emissions from the nation of New Zealand by comparison”, says Bruno Pina, Global Sales Director at Vale.  

Iron ore in pelletized form is, along with green hydrogen from H2 Green Steel’s own electrolyzer facility, critical input materials for the green direct reduced iron (DRI) production which will be used to make near-zero emissions steel in the steel plant in Boden. The process of direct reduction of iron ore using green hydrogen and a fully electrified process achieves a CO2 reduction of up to 95 percent compared to the conventional steel-making process using coal and coke in a blast furnace. 

“This marks another strategic agreement for H2 Green Steel where Vale, in addition to the supply of iron ore pellets, also brings significant experience and great technical knowledge into the collaboration. We look forward to developing decarbonization paths together with the team at Vale. It’s truly impressive to see the engagement outside Sweden for our great project in Boden, says Henrik Henriksson CEO of H2 Green Steel.  

The pellets will be delivered from Tubarão in Brazil to Boden via the Port of Luleå in Sweden.  

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Green Steel World Editorial Team

Green Steel World Editorial Team

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