Vale (NYSE: VALE) is set to commence construction of its low-carbon “mega hubs” within the next six months to a year. These hubs, designed to produce low-carbon iron ore products for the steel industry, will be located in Brazil, the US, and the Middle East, according to Ludmilla Nascimento, Vale’s director of Energy and Decarbonization.
Strategic Locations and Partnerships
The Middle East projects include developments in Oman, Saudi Arabia, and the United Arab Emirates. However, Vale has signed over 50 memorandums of understanding (MOUs) with customers, indicating strong interest and potential for rapid advancement of these projects.
Vale plans to establish and operate iron ore concentration and briquetting plants at these hubs. Moreover, Local partners will handle the necessary logistics infrastructure. In the Middle East, operations will initially be powered by natural gas, but Vale is exploring the use of green hydrogen in Brazil from the outset.
Green Hydrogen and Decarbonization Goals
“Brazil is not going to start with natural gas. Here, we will start with hydrogen due to the country’s energy competitiveness,” Nascimento explained. The aim is to create hubs that produce low or near-zero-carbon products for export. The traditional steel industry, which relies on iron ore and coke (coal), emits a high level of carbon dioxide. For every ton of steel produced, two tons of CO2 are released into the atmosphere.
In contrast, using electric methods reduces emissions significantly. If natural gas is used, the ratio drops to one ton of CO2 per ton of steel. With hydrogen, it can potentially reach zero emissions. “When you go the electric route, it drops to a ratio of one ton of steel to one ton of CO2 if natural gas is used and to zero if hydrogen is used,” Nascimento noted.
The development of these low-carbon mega hubs is part of Vale’s broader strategy to reduce carbon emissions and promote sustainable industrial practices. By leveraging green hydrogen and advanced technology, Vale aims to revolutionize the steel industry’s environmental footprint.
The successful implementation of these projects will not only contribute to Vale’s decarbonization goals but also set a precedent for other companies in the industry. The hubs are expected to significantly reduce carbon emissions associated with steel production, aligning with global efforts to combat climate change.
Vale’s initiative reflects the growing trend towards sustainable energy solutions and highlights the importance of innovative approaches in achieving environmental targets. Moreover, the company’s commitment to green hydrogen and low-carbon technologies positions it as a leader in the transition to a more sustainable future.
Source: Mining.com
