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Among the potential initiatives to be adopted, Vale cited green briquette and direct-reduced iron (DRI) usage, exploring the possibility of building a briquette plant next to the SHS facilities, and Tecnored’s technology utilization.
Tecnored is a unit built by Vale in the Brazilian northern Pará state that makes “green pig iron” by replacing metallurgical coal with carbonized biomass.
SHS is the holding company controlling steelmakers Dillinger and Saarstahl located in the German Saarland state.
“This [memorandum] contributes to Vale’s commitment of cutting 15% of net scope 3 emissions by 2035,” the Brazil-based miner said. “Since 2021, Vale has engaged with around 30 steel industry clients that represented roughly 50% of its scope 3 emissions.”
Since 2021, Vale has engaged with around 30 steel industry clients that represented roughly 50% of its scope 3 emissions
Vale also aims to reduce 33% of scopes 1 and 2 emissions by 2030 and to reach carbon neutrality by 2050. It has signed similar agreements with customers such as Baowu Steel, Hunan Valin Iron & Steel Group and Nippon Steel.
Scope 1 is related to the company’s own greenhouse gas emissions. Scope 2 includes purchased energy, and scope 3 takes into account emissions across the value chain.
Vale, which is the world’s largest iron ore producer, recently cut its DR-grade pellet for the fourth quarter of 2022 by $19.40 per tonne, to $75.60 per tonne.
The company is usually the benchmark-setter in the pellet market.
Fastmarkets’ latest assessment of the iron ore DR-grade premium to 65% Fe fines index, Middle East reference was $95 per tonne on September 30, stable since July 29, when it rose by 44.38% from $65.80 per tonne a month before.
Fastmarkets’ index for iron ore 65% Fe Brazil-origin fines, cfr Qingdao was calculated at $108.50 per tonne on Thursday, stable from the day before but 1.36% lower than $110.00 per tonne a week earlier.