Sweden – H2 Green Steel teams up with global metals and mining leader Rio Tinto to supply direct reduction iron ore pellets for eco-friendly steel production. This strategic alliance signifies a significant step toward decarbonizing the steel industry and revolutionizing the way steel is produced.
The traditional steel production process is notorious for its high carbon emissions, contributing about 8 percent of global carbon emissions. In a bid to revolutionize this industry and address the urgent need for decarbonization, H2 Green Steel and Rio Tinto have joined forces in a pioneering partnership. The collaboration aims to supply direct reduction iron ore pellets (DR Pellets) from Rio Tinto’s Iron Ore Company of Canada (IOC) to H2 Green Steel’s flagship plant in Boden, Sweden.
Eco-friendly supply chain
The multi-year supply agreement for DR Pellets is a significant stride toward greener steel production. These pellets are a crucial ingredient for producing high-grade low-carbon hot briquetted iron (HBI), which forms the foundation for generating steel with lower emissions through electric arc furnaces. This collaboration echoes the commitment of both companies to support the decarbonization of iron and steel making and reduce their scope 3 emissions.
H2 Green Steel’s ambitious project is centered around their plant in Boden, Sweden, which is set to start operations in 2025. This plant is set to be a game-changer, being the world’s first large-scale production of green steel. The heart of the innovation lies in the integration of cutting-edge technology, digitalization, and circular practices. The plant’s production process hinges on green hydrogen, which will replace coal in reducing iron ore to green sponge iron. This revolutionary shift can slash CO2 emissions from the process by a staggering 95 percent.
