SHS undertakes tasks for two major steel companies in Saarland. Credit: Saarstahl.

Brazilian mining company Vale has signed a memorandum of understanding (MoU) with German steelmaker Stahl-Holding-Saar (SHS) to develop solutions for carbon-neutral steelmaking.

The two firms will jointly study and explore the use of Vale’s green iron ore briquettes and direct reduction pellets in steelmaking, as well as Tecnored technology and a briquette plant located near SHS’ facilities.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The move is expected to contribute to Vale’s target to reduce its net Scope III emissions by 15% by 2035.

Vale also aims to lower its absolute Scope I and I emissions by 33% by 2030 and attain net-zero emissions by 2050.

SHS undertakes tasks for two major steel companies in Saarland, Aktien-Gesellschaft der Dillinger Hüttenwerke (Dillinger) and Saarstahl.

Earlier this year, Vale and Nippon Steel signed a memorandum to enact carbon-neutral steelmaking processes.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The firms will jointly research the use of raw materials that will contribute to direct reduced iron, green mould pig iron, green briquettes and other carbon-neutral steelmaking processes.

The partnership came after Nippon Steel announced its Nippon Steel Carbon Neutral Vision 2050 in March last year.

This plan positions global environmental issues as a ‘vital issue’ for Nippon Steel’s business management and aims to consider and carry out several measures in line with this.

In April this year, Vale began developing a $345m low-carbon pig iron plant in Marabá, Brazil.

Located near Vale’s iron ore open mine at Carajás, the facility is expected to have an annual output of 500,000t.

It is scheduled to become operational in 2025.

The facility will feature Tecnored’s technology that aims to enable the production of green pig iron by replacing metallurgical coal with biomass. Pig iron is used in the production of steel.

According to Vale, the use of biomass can reduce carbon emissions by up to 100%.