ArcelorMittal Tubarão and EDP, a company that operates in all segments of the Brazilian electricity sector, signed a Memorandum of Understanding (MOU) to evaluate the technical and economic feasibility of a pilot plant for the production and use of green hydrogen in the steel manufacturing process.

The initiative is part of the efforts of ArcelorMittal Tubarão to boost the production of low-carbon steel and EDP to expand the production of green hydrogen using the expertise of the company, which pioneered the production of the first green hydrogen molecule in Latin America in December 2022.

In the first stage—Preliminary Feasibility—the technical, economic and environmental aspects of the project will be evaluated. The scope and requirements necessary for its implementation will also be defined, establishing a solid basis for decisions related to the next steps of the partnership.

The cooperation study began in August, when working groups from various areas, such as engineering, project development, environmental, utilities, regulation and financial, began the activities, working in a collaborative and integrated way to identify possible mutually beneficial business models.

The feasibility of installing a pilot plant will be evaluated according to the results obtained in the various stages of the study, especially in the Project Definition Stage. At this stage, the investment forecast and the complete results of the feasibility of the project will be analyzed in detail to enable decision-making on the implementation of the pilot plant. The study should be completed in one year.

According to Jorge Oliveira, CEO ArcelorMittal Aços Planos Latin America, this initiative is aligned with the Group’s global goal of becoming carbon neutral by 2050, participating in the transition process to a low-carbon economy.

ArcelorMittal Tubarão is the largest integrated plant in Latin America, with the capacity to produce, per year, 7.5 million tons of high quality flat steels directed to various sectors, such as automotive, household appliances, naval, pipes, civil construction and agricultural implements. World leader in plates, it sells hot-rolled coils in domestic and foreign markets, and is one of the largest and most important in Espírito Santo, with about 11,000 direct and indirect employees.