Rio Tinto Teams Up with H2 Green Steel to Bolster the Shift Towards Eco-Friendly Steel Production

Rio Tinto and H2 Green Steel, a dynamic industrial startup dedicated to pioneering large-scale production of environmentally friendly steel, have joyfully inked a multi-year supply agreement. This partnership entails the delivery of top-tier direct reduction iron ore pellets sourced from Rio Tinto’s Iron Ore Company of Canada (IOC) operations. An added facet of this collaboration involves Rio Tinto's acquisition and subsequent distribution of a portion of the surplus low carbon hot briquetted iron (HBI) generated by H2 Green Steel as it revs up its steelmaking capabilities.

In a splendid development, IOC’s direct reduction pellets will constitute a substantial chunk of the iron ore supplied to H2 Green Steel’s flagship facility in Boden, Sweden. This groundbreaking plant is poised to become one of the planet’s premier producers of low carbon iron and steel.

Anticipated to commence operations in 2025, the fully integrated, digitally advanced, and circular plant will orchestrate the transformation of direct reduction pellets into HBI. Subsequently, it will employ electric arc furnaces fueled by green hydrogen to forge steel. Notably, the Boden site is destined to host one of the globe's most expansive electrolysis plants, a powerhouse for producing green hydrogen.

The process of steel production, a cornerstone of infrastructure and the journey to net-zero energy consumption, presently contributes approximately 8% of the world's carbon emissions. By embracing green hydrogen as a substitute for coal in traditional blast furnace steelmaking, electric arc furnaces can slash CO2 emissions by a staggering 95 percent.

Henrik Henriksson, the effervescent Chief Executive Officer of H2 Green Steel, exclaimed, "We're leaping over a remarkable hurdle in Boden. Our triumph lies not just in securing a dependable source of top-quality iron ore for our eco-conscious steel production, but also in establishing a buyer for the initial surplus of HBI we'll produce. Rio Tinto's global prominence in mining makes their resolute commitment to expediting the steel industry's transition to a greener state highly commendable."

Simon Farry, Rio Tinto's luminary in the realm of Steel Decarbonisation, shared, "We're fostering partnerships across the entire steel landscape to uncover more effective avenues for promoting the eco-friendly evolution of iron and steel production. This supply of premium iron ore pellets is set to turbocharge H2 Green Steel's endeavors, and our engagement in distributing their low-carbon HBI is an enlightening voyage into the future requirements of our valued customers and end users within the burgeoning green iron and steel market."

Source : Rio Tino