Vale and GreenIron have signed a Memorandum of Understanding (MoU) to collaborate on key initiatives in Brazil and Sweden for the decarbonisation of the mining and metals supply chain, they say.
Both companies will develop a feasibility study for a direct reduction facility in Brazil, to be operated by GreenIron. The MoU also focuses on the supply of Vale’s iron ore to GreenIron’s commercial operations in Sandviken, Sweden.
The feasibility study for a facility in Brazil will include the selection of a suitable site for the project, together with the assessment of renewable energy and resource supply options. The study will evaluate the feasibility of using green hydrogen and other innovations to reduce the environmental impact of future operations.
GreenIron’s innovative technology is flexible in terms of feedstock options and capacity tailored to clients, it says. It also has lower cost and is compatible with the use of green hydrogen. The commercial operations in Sandviken are being commissioned and scale-up is expected for 2025.
Rogério Nogueira, EVP of Commercial and New Business at Vale, said: “This agreement brings together Vale’s superior product portfolio, Brazil’s competitive advantage on green hydrogen and GreenIron’s expertise on sustainable iron production to provide low-carbon solutions for the mining and metals industry. We are focused on helping our clients achieve their decarbonisation targets and also fostering Brazil’s new industrialisation.
Edward Murray, CEO of GreenIron, says: “This MoU with Vale marks a significant milestone for GreenIron. It represents a clear commitment to pursue collaborative opportunities that align with our vision for a sustainable mining and metals industry, and to drastically reduce the sector’s climate footprint. By pooling our expertise and resources, we aim to innovate and develop projects that not only benefit both companies but also positively impact the environment and the communities in which we operate.”
Vale and GreenIron have been working for the past two years in testing the use of iron ore pellets produced by Vale at GreenIron’s facilities in Sweden. According to the MoU, future tests will also include iron ore briquettes, an innovative product developed by Vale that emits less CO2 in its production than pellets, Vale says.
