Vale signed a Memorandum of Understanding (MoU) with the Port of Açu in order to study the development of a Mega Hub at the port located in São João da Barra in the state of Rio de Janeiro, Brazil to produce hot briquetted iron (HBI) using the direct reduction route.
The Mega Hub will initially receive pellets from Vale and could, in the future, include an iron ore briquette plant at the site to supply the direct reduction route at the industrial complex.
According to the agreement, both companies will seek to attract investors and clients to build and operate the Direct Reduction plant using natural gas which will be available at the port, with the possibility of eventually converting to green hydrogen, producing HBI with near-zero carbon emissions.
Vale noted that “HBI is a pioneer initiative that considers a technical study coordinated by the Port of Açu and sectorial academics which proposes the use of HBI as partial burden in blast-furnaces, reducing greenhouse gas emissions and increasing steelmaking productivity without needing to substitute existing assets, such as the blast-furnaces and steelworks.”
In fact, HBI is mostly used in electric arc furnaces. Using HBI in this type of furnace will enable a smoother decarbonisation process for the Brazilian steelmaking industry, according to Vale.
“The signing of this partnership demonstrates the full industrialization potential of the Port of Açu, confirming its vocation as the port of energy transition in Brazil,” pointed out José Firmo, CEO of Port of Açu.
He added, “We believe that the Port of Açu, with its unique port infrastructure in the country, strategic location and potential for the most competitive Brazilian natural gas prices, brings together unique characteristics to, together with Vale, contribute to the decarbonization of the domestic and international steel industry.”
