H2 Green Steel partners with Rio Tinto and Vale on direct reduction iron ore pellets and hot briquetted iron
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 (DRI) 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, digitalized, 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. (Earlier post.)
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%.
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.—H2 Green Steel CEO Henrik Henriksson
Iron ore pellet deal with Vale. Separately, H2 Green Steel also entered an agreement for the supply of direct reduction iron ore pellets with Vale to its steel plant in northern Sweden. In a multi-year agreement, Vale will supply H2 Green Steel with iron ore pellets as input material for its steel mill in Boden. Vale is a Brazilian mining company and the world’s largest supplier of direct reduction pellets.
The pellets will be delivered from Tubarão in Brazil to Boden via the Port of Luleå in Sweden.