Posted on 09 Jun 2022
Anglo-Australian miner Rio Tinto has signed a Memorandum of Understanding (MOU) with Salzgitter Group, one of the largest steel producers in Europe, to work together towards carbon-free steelmaking by studying optimization of Rio Tinto's Canadian and Australian iron ore products for use in Salzgitter's SALCOS green steel project in Germany, according to a Rio release on June 7.
Under the MOU, Rio Tinto and Salzgitter will explore optimization of iron ore pellets, lump and fines for use in hydrogen direct reduction steelmaking. The two companies will also explore the potential for greenhouse gas emission certification across the steel value chain, Rio said. The miner produces iron ore pellets and concentrates at Iron Ore Company of Canada and iron ore lump and fines in Western Australia's Pilbara region, Mysteel Global notes.
The partnership will focus on the potential use of these products in the Salzgitter Low CO2 Steelmaking program (SALCOS) which is targeting virtually carbon-free steel production, starting step by step in 2025 using hydrogen direct reduction, according to the company release.
The miner said it is committed to reaching to net zero emissions by 2050 and is targeting a 15% reduction in Scope 1 & 2 emissions by 2025 (from a 2018 baseline) and a 50% reduction by 2030. Its approach to addressing Scope 3 emissions is to engage with customers on climate change and work with them to develop the technologies to decarbonize.
Under the SALCOS program, Salzgitter's carbon-based blast furnace route will gradually be replaced from the middle of this decade by direct reduction plants, initially operated by natural gas and then with a steadily increasing proportion of hydrogen.
Source:Mysteel Global
