Brazilian mining company Vale and European hydrogen firm Green Energy Park have announced a partnership to establish a green hydrogen production facility in Brazil aimed at manufacturing low-carbon steel products. The joint initiative plans to create a 'Mega Hub' complex in Brazil to cater to international steel companies, with a focus on producing hot-briquetted iron (HBI). Vale will provide iron ore as input for HBI production, utilizing renewable hydrogen as the reducing agent to significantly reduce carbon emissions. By transitioning from blast furnace steel production to electric arc furnaces powered by green hydrogen, the collaboration aims to cut emissions by 80%. Supported by the EU's Global Gateway program, the partnership will also work on various aspects of the hydrogen value chain including the installation of electrolysers and the design of industrial plants for green hydrogen technologies. This move is crucial in the context of the steel industry being a significant contributor to global carbon emissions, particularly through the use of coal in blast furnaces. The Net Zero Steel Initiative, with a target of achieving net zero emissions in the sector by 2050, underlines the importance of such initiatives. Globally, the steel demand is projected to increase by over 30% by 2050, necessitating a shift away from traditional thermal power sources to reduce emissions. This collaboration between Vale and Green Energy Park signifies a step towards combating climate change by revolutionizing steel production with green hydrogen technology.