H2 Green Steel, Rio Tinto Partner for Ore Innovations
H2 Green Steel has forged a strategic partnership with Rio Tinto, a renowned global metals and mining powerhouse.
This collaboration aims to bolster the supply of direct reduction iron ore pellets, a crucial component for H2 Green Steel's environmentally friendly steel production in Sweden.
In an endeavour that spans multiple years, the two companies have solidified a comprehensive supply agreement, with Rio Tinto's Iron Ore Company of Canada (IOC) set to furnish a substantial portion of direct reduction iron ore pellets (DR Pellets).
These pellets will play a pivotal role in fueling the iron ore requirements of H2 Green Steel's flagship facility situated in Boden, Sweden. Furthermore, a parallel agreement has been established wherein Rio Tinto will acquire and subsequently resell a portion of the surplus low-carbon hot briquetted iron (HBI) generated during H2 Green Steel's steelmaking capacity ramp-up.
The significance of DR Pellets lies in their critical role as foundational material for producing high-grade HBI. This high-grade HBI, in turn, facilitates the creation of steel with significantly reduced emissions through the utilisation of electric arc furnaces.
Given that the steel manufacturing process presently contributes approximately 8 per cent of the world's carbon emissions, this collaboration assumes an instrumental role in the broader context of infrastructure development and the ongoing pursuit of a net-zero energy transition.
Simon Farry, Head of Rio Tinto Steel Decarbonisation, underscores the partnership's strategic implications: "We are fostering collaboration within the steel ecosystem to discover innovative avenues for supporting the decarbonisation of iron and steel production while mitigating our scope 3 emissions.
"Our provision of top-tier iron ore pellets will not only accelerate the progress of H2 Green Steel's ambitious project but also our engagement in marketing their low-carbon HBI will furnish us with valuable insights into the evolving needs of our stakeholders and users within the burgeoning green iron and steel market."
Anticipated to commence operations in 2025, H2 Green Steel's pioneering fully integrated, digitally enhanced, and circular plant is poised to mark a transformative milestone in the realm of green steel production.
Nestled in the northern Swedish city of Boden, this innovative site will host one of the world's largest electrolysis facilities dedicated to green hydrogen synthesis.
The resultant green hydrogen will play a pivotal role in reducing iron ore into environmentally responsible green sponge iron.
The adoption of green hydrogen instead of conventional coal is expected to yield a staggering reduction of up to 95 per cent in CO2 emissions arising from the production process.
Henrik Henriksson, CEO at H2 Green Steel, aptly summarises the significance of this partnership: "This marks a momentous juncture for our Boden project. Our achievement extends beyond securing a steadfast supply of top-quality iron ore essential for our green steel enterprise; it also encompasses securing a buyer for a portion of the initial HBI output. Rio Tinto, a global vanguard in the mining sector, demonstrates a tangible commitment to expediting the steel industry's transition toward decarbonisation."
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Source: H2 Green Steel
