Posted on 20 Oct 2021
Brazilian miner Vale and Chinese steelmaker Jiangsu Shagang will work together to lower carbon emissions during steelmaking.
Vale and Jiangsu Shagang intend to undertake economic feasibility studies on the usage of products with lower carbon footprints in the ironmaking process, such as high-grade iron ore products. They will also cooperate on Tecnored plants.
Tecnored is a 100pc owned Vale subsidiary focused on developing a low-carbon pig iron process by using energy sources which will generate less CO2 than using coal and coke.
Vale has committed to reduce 15pc of its net scope 3 emissions by 2035. The firm is also aiming to reduce its absolute scope 1 and 2 emissions by 33pc by 2030 and achieve carbon neutrality by 2050.
Earlier in September, the miner announced the launch of "green briquettes" which can be used to lower greenhouse gas (GHG) emissions by "up to 10pc during production processes used by its steelmaking clients". The green briquettes will help reduce dependency on sintering, which requires intensive coal usage and is therefore emissions-intensive. The initial production capacity will be approximately 7mn t/yr and operations are expected to start in 2023.
Seaborne metallurgical coal prices are at a record high because of tight supply and robust demand, especially from China. The Chinese government has set goals to hit peak carbon emissions by 2030 and achieve carbon neutrality by 2060. China is set for wider and stricter steel production cuts in the autumn-winter period, with the country on track to achieve the goal of flattening 2021 steel production over 2020 levels.
Source:Argus
