Vale, the multinational mining company, and Hydnum Steel have signed an agreement to develop low carbon solutions for steelmaking

• Both companies will collaborate on the potential implementation of technological solutions such as the iron ore briquettes.
• Hydnum Steel is one of the flagship projects for green steel production in Europe. It will create over 1,000 direct jobs and involve an investment exceeding 1.6 billion euros.

February 8, 2024.

The multinational mining company Vale has joined the Hydnum Steel project after the signing of a Memorandum of Understanding (MOU) by both companies. This move strengthens the alliance, which also includes Siemens, Primetals Technologies, Russula, and Abei Energy, to build the first green steel plant in the Iberian Peninsula in the city of Puertollano, Castilla-La Mancha.

Vale and Hydnum Steel will collaborate in the development of solutions for the supply of high-quality iron ore briquettes using agglomeration technologies that reduce ironmaking carbon footprint when compared to usage of pellets or sinter. Developed by Vale at its technology center in Brazil, briquette 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.

The agreement includes jointly evaluating the possibility of conducting the agglomeration process within Hydnum Steel’s own facilities through the construction of a briquette manufacturing complex.

Joining Hydnum in this project is another important step towards Vale’s target of reducing its scope 3 emissions in the value chain by 15% by 2035. The combination of Vale’s innovative and low carbon briquette together with the green steel produced by Hydnum will drive to proximity zero emissions the steelmaking process, says Vale’s Product and Business Development Director, Rogerio Nogueira.

Fernando Pessanha, Chief Strategy Officer of Hydnum Steel, has emphasized “the importance of having partners like Vale, who share the same values that drive us to build a new industry, committed to the environment 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 is one of the flagship projects for green steel production in Europe. The plant will begin producing 1.5 million tons of rolled steel, and it is projected to have an annual capacity of 2.6 million tons starting from 2030.

It will occupy an area of 2 million square meters. It is expected to generate more than 1,000 direct job positions and will represent an investment exceeding 1.6 billion euros.

Among other sectors, the plant will supply high-strength steel to the spanish automotive industry, which accounts for 10 percent of Spain’s Gross Domestic Product (GDP). At the same time, Spain and Europe are traditionally net importers of flat steel, so Hydnum Steel represents a strategic commitment to market sovereignty.

The steel industry is responsible for approximately 9% of carbon dioxide emissions worldwide. Hydnum Steel will be built with next-generation technology designed to replace the use of fossil fuels with green hydrogen, thereby contributing to the decarbonization of the sector.

The agreement with Vale reinforces Hydnum Steel’s commitment to highly efficient, sustainable, and safe steel production, fully aligned with Sustainable Development Goals.

ABOUT VALE

Vale is a global mining company that exists to improve lives and transform the future together. One of the world’s largest producers of iron ore and nickel and a major copper producer, Vale is headquartered in Brazil and operates around the world. Its operations comprise integrated logistics systems, including approximately 2,000 kilometers of railways, marine terminals and 10 ports distributed around the globe.

Vale has the ambition to be recognized by society as a benchmark in safety, the best-in-class reliable operator, a talent-driven organization, a leader in sustainable mining, and a benchmark in creating and sharing value.