Sweden’s H2 Green Steel joins forces with global mining giant Rio Tinto to pioneer a groundbreaking approach to steel production that slashes carbon emissions and propels the industry toward a sustainable future.
In a monumental stride towards reshaping the steel industry’s carbon footprint, H2 Green Steel and Rio Tinto have embarked on a transformative partnership. The collaboration centers on the supply of direct reduction iron ore pellets (DR Pellets) from Rio Tinto’s Iron Ore Company of Canada (IOC) to fuel H2 Green Steel’s innovative green steel production in Boden, Sweden. This visionary venture aims to accelerate the transition to sustainable steelmaking and reduce the sector’s substantial carbon emissions.
At the heart of this partnership lies a commitment to decarbonize steel production, a sector notorious for its significant contribution to global carbon emissions. H2 Green Steel’s pioneering plant, set to commence operations in 2025, marks a paradigm shift. Nestled in Boden, northern Sweden, this fully integrated, digitalized, and circular facility is poised to become a beacon of sustainable steel production. Central to its innovation is the world’s largest electrolysis plant, primed to generate green hydrogen, a key player in the reduction of iron ore to green sponge iron.
The partnership between H2 Green Steel and Rio Tinto unfolds in two strategic phases. Firstly, Rio Tinto will supply DR Pellets, a vital component for high-grade hot briquetted iron (HBI) production. HBI, used in electric arc furnaces, is pivotal in creating low-emission steel. This infusion of high-quality iron ore from Rio Tinto’s IO is anticipated to drive H2 Green Steel’s flagship plant’s operations and foster the inception of greener steelmaking.
Secondly, a pivotal facet of this partnership is Rio Tinto’s commitment to purchasing and distributing a portion of the surplus low-carbon HBI generated during H2 Green Steel’s ramp-up phase. This symbiotic relationship not only empowers H2 Green Steel’s ascendancy but affords Rio Tinto invaluable insights into the evolving green iron and steel landscape, ultimately catalyzing comprehensive decarbonization efforts.
Simon Farry, Head of Rio Tinto Steel Decarbonization, underscores the partnership’s far-reaching impacts: “We are partnering across the steel ecosystem to find better ways to support the decarbonisation of iron and steel making, and to reduce our scope 3 emissions.” Farry’s sentiment encapsulates the seismic shift this partnership heralds, spotlighting the commitment to sustainable steel production and an earnest endeavor to minimize the industry’s carbon footprint.