Vale and Green Energy Park Forge Alliance to Pioneer Green Hydrogen Hub in Brazil

In a groundbreaking partnership poised to reshape the global steel industry, Vale, a global leader in iron ore production, and Green Energy Park (GEP), an integrated European hydrogen company, have joined forces to develop a green hydrogen supply chain in Brazil. This bold collaboration will pave the way for a future Mega Hub dedicated to manufacturing low-carbon steel products, marking a significant milestone in the worldwide decarbonization effort.

Decarbonizing Steel: The Future of Sustainable Manufacturing

The steel industry is one of the biggest emitters of carbon dioxide, responsible for approximately 8% of global emissions, primarily due to its reliance on coal-powered blast furnaces. For every ton of steel produced, traditional blast furnaces emit a staggering 2.0 tons of CO2 into the atmosphere. In contrast, Vale and GEP’s green hydrogen-fueled process promises to reduce emissions to just 0.4 tons per ton of steel—a reduction of 80%. This transformative shift toward “green steel” is not just an innovation for the industry; it represents a critical step in combating climate change and reaching global carbon neutrality goals by 2050.

Brazil’s Role as a Global Green Hydrogen Powerhouse

Brazil’s abundant renewable energy resources and high-quality iron ore position it as a natural leader in green hydrogen production. By leveraging these advantages, Vale aims to foster a low-carbon economy within the country, while simultaneously supplying the global steel market with green hydrogen and hot-briquetted iron (HBI)—a crucial material in producing low-emission steel.

“This is a win-win partnership for Brazil and Europe,” says Ludmila Nascimento, Director of Energy and Decarbonization at Vale. “We are utilizing Brazil’s competitive edge to offer green HBI with high added value to European steelmakers while driving Brazil’s new wave of industrialization rooted in low-carbon solutions.”

This partnership supports Brazil’s ambition to become a leader in green hydrogen, a role that will not only boost its economy but also significantly contribute to the global fight against climate change.

Green Energy Park: Bringing Hydrogen Innovation to the Steel Industry

Green Energy Park’s contribution to this alliance is a game-changer for the steel sector. With the backing of Europe’s Global Gateway program, GEP brings its state-of-the-art electrolyzer technologies and process engineering expertise to the table. Their focus on hydrogen production at a gigawatt scale, combined with advanced cryogenic gas handling and storage solutions, enables the development of green hydrogen on a massive, standardized platform. This efficiency is crucial to lowering the costs of hydrogen production, making green steel an economically viable alternative for industries across the globe.

Bart Biebuyck, CEO of GEP, underscores the significance of this collaboration: “The partnership with Vale is a major milestone on our journey to Net Zero. By working with the largest producer of direct reduction pellets, we are bringing our green hydrogen technology to hard-to-abate sectors. Together, we are poised to create a highly competitive platform for green steel production, not just in Europe, but around the world.”

The Vision of a Mega Hub: Building a Low-Carbon Steel Ecosystem

At the heart of this partnership lies the vision of a future Mega Hub in Brazil, an industrial complex designed to produce low-carbon steel products on a massive scale. Through this hub, Vale and GEP will create an open platform that allows global steel companies to source and produce green HBI in Brazil. This platform could be a beacon for international partnerships, attracting major players in the steel industry to join forces in the pursuit of sustainability.

In these hubs, Vale plans to produce iron ore agglomerates—pellets or briquettes—that serve as inputs for the production of HBI. The crucial difference in this process lies in the use of renewable hydrogen as the reducing agent, a clean alternative to coal that drastically lowers emissions.

With this partnership, Vale’s commitment to the low-carbon industry aligns seamlessly with GEP’s mission to accelerate the global energy transition through hydrogen innovation. Together, they aim to build a robust green hydrogen supply chain that will fuel the future of sustainable steel production.

Green Hydrogen: The Key to Unlocking a Sustainable Steel Future

Hydrogen is widely regarded as the key to decarbonizing hard-to-abate sectors like steel, cement, and chemicals. The transition to hydrogen as a clean energy source offers the potential to significantly reduce the carbon footprint of these industries. By integrating green hydrogen into the steel production process, Vale and GEP are not only addressing the environmental impact of steel but also driving the energy transition forward in one of the world’s most carbon-intensive sectors.

Beyond the steel industry, this partnership opens doors for other sectors to adopt green hydrogen as a clean alternative to traditional fossil fuels. The deployment of electrolyzers and the development of infrastructure for hydrogen storage and transportation will have far-reaching implications for global decarbonization efforts.

A Green Revolution in Steel Production

The Vale-GEP partnership is a significant leap forward in the global pursuit of a low-carbon economy. By combining Vale’s expertise in iron ore production and GEP’s cutting-edge hydrogen technology, this alliance sets the stage for a new era of green steel manufacturing. As Brazil positions itself as a leader in green hydrogen production, the future Mega Hub will serve as a catalyst for the global steel industry’s transformation.

With an 80% reduction in carbon emissions, this partnership not only addresses the environmental challenges of steel production but also strengthens international cooperation in the fight against climate change. The road to Net Zero is long, but with initiatives like this, the future of green steel is within reach.

Source:
Green Energy Park