Rio Tinto has inked a Memorandum of Understanding with Paul Wurth S.A. and SHS-Stahl-Holding-Saar GmbH & Co. KGaA (SHS) to explore the production of a low-carbon steel feedstock.
Paul Wurth is an international leader in the design and supply of engineering solutions for integrated steelmakers and SHS is one of Europe’s best-known steelmakers.
Under the agreement, the three parties will explore the viability of transforming iron ore pellets into low-carbon hot briquetted iron (HBI), a low-carbon steel feedstock, using green hydrogen generated from hydro-electricity in Canada.
Rio Tinto, through its subsidiary Iron Ore Company of Canada (IOC), will supply high-grade iron ores for the project.
IOC president and chief executive officer Clayton Walker said the parties will conduct a feasibility study into the potential development of industrial scale low-carbon iron production in Canada, utilising the combined expertise of the three partners across the entire steel value chain.
“This partnership is part of Rio Tinto’s climate strategy to pursue pro-active and action-oriented partnerships to support the development and deployment of low-carbon technologies for hard-to-abate processes like steelmaking,” Mr Walker said.
“We are absolutely committed to being part of the solution on climate change and to support our customers and other stakeholders in the steel value chain as the industry transitions to a low-carbon future.”
Georges Rassel, CEO of Paul Wurth S.A, said his company brings to the table expertise in plant building and process knowledge in the field of highly efficient hydrogen generation and Midrex direct reduction plants.
“This collaboration reflects Paul Wurth’s strategy to support our customers from the very beginning of their projects as a reliable and trusted partner,” he continued.
“By associating the different players of the metal production chain, we are confident to develop the most appropriate and efficient solutions for this challenging transition towards a carbon neutral industry.”
Martin Baues, Member of the Board of Directors for Technology at SHS, said the partnership will see SHS provide deep iron and steel making expertise.
“The use of hydrogen in steel production is a key factor in reducing carbon emissions,” Mr Baues added.
“This partnership can further help us to reduce our carbon emissions on the basis of this technology, while gaining important experience in using hydrogen in steel production.”
