Vale and Green Energy Park Partner to Develop Green Hydrogen Supply Chain in Brazil for Future Mega Hub

BRUSSELS--(BUSINESS WIRE)-- Vale and Green Energy Park (GEP), an integrated European hydrogen company, have joined forces to deliver decarbonization solutions for the global steel sector. This partnership focuses on feasibility studies for developing a green hydrogen production facility to supply a future Mega Hub in Brazil aimed at manufacturing low-carbon steel products. This joint initiative provides an open platform for global steel companies to source and produce hot-briquetted iron (HBI) in Brazil, accelerating the low-carbon steel industry.

>> In Other News: Darling Ingredients Inc. Announces Agreement to Bring First Regular Supply of Sustainable Aviation Fuel to Florida Through Diamond Green Diesel Joint Venture

Vale has been actively seeking partners to enable the construction of Mega Hubs in Brazil, aligning with its strategic goal to foster the country's low-carbon industry. In these industrial hubs, Vale plans to produce iron ore agglomerates (pellets or briquettes), which will serve as an input to produce HBI using renewable hydrogen as the reducing agent. The agreement with GEP is a crucial step toward this goal.

"This is a win-win partnership for Brazil and Europe," says Ludmila Nascimento, Director of Energy and Decarbonization at Vale. By leveraging Brazil's advantages, we aim to develop green hydrogen supply, enabling the production of "green" HBI with high added value for European steelmakers and fostering Brazil's low-carbon economy while combating climate change.

"The partnership with Vale is a major milestone on our journey to Net Zero," comments Bart Biebuyck, CEO of GEP. We are proud to collaborate with Vale to help decarbonize the steel sector, bringing our green hydrogen technology to the core of the hard-to-abate sectors and offering a competitive platform for green steel production globally.

The iron and steel industry contributes approximately 8% of global carbon emissions, primarily due to the use of coal in blast furnaces. High carbon emissions in the steel industry pose a challenge to reducing greenhouse gas emissions and achieving carbon neutrality by 2050.

For every ton of steel produced in blast furnaces, approximately 2.0 tons of CO2 are released into the atmosphere. In contrast, the direct reduction route using green hydrogen as the reducing agent reduces carbon emissions by 80%, with approximately 0.4 tons of CO2 per ton of steel produced, enabling "green steel" production.

Vale and GEP will collaborate on various aspects of the hydrogen value chain, including the deployment of electrolysers and the design of industrial plants for green hydrogen and other decarbonization applications. This collaboration is supported by Europe’s Global Gateway program.

To reduce costs, Green Energy Park will implement state-of-the-art electrolyser technologies on a standardized production platform. Green Energy Park's integrated hydrogen production plant features advanced process engineering designs, including storage and handling facilities for hydrogen and its derivatives, contributing deep engineering and EPC expertise.

About Green Energy Park

Green Energy Park is an integrated hydrogen company leading one of the largest climate impact projects globally. The company designs, builds, and operates hydrogen production infrastructure with ammonia and methanol as renewable energy carriers. GEP accelerates the energy transition and aims to make the hydrogen economy a reality through cost leadership and technological innovation.

About Vale

Vale is a global mining company dedicated to improving lives and transforming the future. As one of the largest producers of iron ore and nickel, Vale operates worldwide, with integrated logistics systems and a focus on sustainable mining. The company is committed to being a benchmark in safety, a reliable operator, and a leader in value creation and sustainability.