Vale's Low-Carbon Iron Ore Mega Hubs Plan for Green Steel Industry
Key Ideas
- Vale is planning to build 'mega hubs' in Brazil, the US, and the Middle East to produce low-carbon iron ore products for the steel industry.
- In the Middle East, projects in Oman, Saudi Arabia, and the UAE are already underway, with more than 50 MOUs signed with customers.
- While natural gas will initially power operations in the Middle East, Vale is exploring the use of green hydrogen in Brazil to achieve almost zero-carbon production.
- Transitioning to hydrogen could significantly reduce carbon emissions in the steel industry, potentially reaching zero emissions per ton of steel produced.
Vale, a mining company, is set to embark on constructing 'mega hubs' in Brazil, the US, and potentially the Middle East to develop low-carbon iron ore for the steel industry. These hubs will house iron ore concentration and briquetting plants, with logistics infrastructure provided by local partners. While projects in the Middle East are expected to commence with natural gas, Vale is evaluating the utilization of green hydrogen in Brazil. By leveraging Brazil's energy competitiveness, the company aims to export low or nearly zero-carbon iron ore products, effectively exporting energy through its products. Through this initiative, Vale plans to significantly reduce carbon emissions in steel production, with the potential to achieve zero emissions per ton of steel by transitioning to hydrogen, compared to the traditional method which emits two tons of CO2 per ton of steel produced.