Mining company Anglo American and Swedish hydrogen and steel producer H2 Green Steel have signed a memorandum of understanding to advance low carbon steelmaking processes. The deal aims to explore ways for responsibly produced iron ore from Anglo American’s operations to be used in H2 Green Steel’s low carbon production process.
As per the agreement, a testing phase will include the utilization of premium-grade iron ore sourced from Anglo American’s Kumba mines in South Africa and Minas-Rio mine in Brazil as a feedstock for H2 Green Steel’s direct reduced iron (DRI) production process at its Boden facility in Sweden.
The partnership may consider incorporating lump iron as an alternative to the required iron pellets for DRI can enhance the flexibility of H2 Green Steel’s production process. This possibility offers a complementary solution for iron usage.
DRI is a less carbon-intensive steel production method than the traditional blast furnace and basic oxygen furnace integrated steelmaking process. H2 Green Steel is developing a circular DRI plant in Boden that will produce green steel, reducing CO2 emissions by up to 95% compared to traditional steelmaking.
Anglo American has committed to reducing its Scope 3 emissions by 50% by 2040. With the majority of its Scope 3 emissions linked to steelmaking coal and iron ore, the steel value chain is crucial to the success of its decarbonization efforts.
The firm has entered into agreements with various leading steel manufacturers in Europe and Asia to examine effective feed materials that are appropriate for application in direct reduced iron (DRI) steelmaking, which comprises iron ore pellets and lump iron ore.
Source: PRESS RELEASE
Image of Lump Iron Ore: H2 Green Steel