Rio Tinto and H2 Green Steel partner to accelerate the green steel transition
August 09 2023 - 2:00AM
Business Wire
Rio Tinto and H2 Green Steel, an industrial startup establishing
large scale production of green steel, have signed a multi-year
supply agreement for high grade direct reduction iron ore pellets
from Rio Tinto’s Iron Ore Company of Canada (IOC) operations. Rio
Tinto will also purchase and on-sell a part of the surplus low
carbon hot briquetted iron (HBI) produced by H2 Green Steel during
the ramp-up of its steelmaking capacity.
IOC’s direct reduction pellets will account for a significant
part of the iron ore supply to H2 Green Steel’s flagship plant in
Boden, Sweden, which will be one of the world’s first large-scale
producers of low carbon iron and steel.
The fully integrated, digitalised, and circular plant is
expected to start operations in 2025, processing direct reduction
pellets into HBI and then making steel through electric arc
furnaces using green hydrogen. The Boden site will hold one of the
world’s largest electrolysis plants for green hydrogen
production.
The production of steel, a key material for infrastructure and
net-zero energy transition, currently contributes around 8% of
global carbon emissions. By using green hydrogen in electric arc
furnaces instead of coal in traditional steelmaking with a blast
furnace, CO2 emissions can be reduced by up to 95 percent.
H2 Green Steel Chief Executive Officer Henrik Henriksson said:
“This is a significant milestone for our project in Boden. Not only
by securing a supply of the high-quality iron ore needed for our
green steel production, but also because we have a buyer for a
portion of the HBI we initially expect to produce. Rio Tinto is a
global leader in the mining industry and we welcome its concrete
actions to accelerate the decarbonisation of the steel
industry.”
Rio Tinto Head of Steel Decarbonisation Simon Farry said: “We
are partnering across the steel ecosystem to find better ways to
support the decarbonisation of iron and steel making, and to reduce
our scope 3 emissions. Our supply of high-grade iron ore pellets
will support the acceleration of H2 Green Steel’s project, and
on-selling their low-carbon HBI will enable us to gain a deeper
understanding of the future needs of our customers and end users in
the emerging green iron and steel market.”
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version on businesswire.com: https://www.businesswire.com/news/home/20230808069064/en/
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