Vale and Green Energy Park Team Up to Revolutionize Green Steel Production with Hydrogen Hub in Brazil

Vale partners with Green Energy Park to develop a green hydrogen hub in Brazil, enabling sustainable low-carbon steel production for global markets and reducing emissions by up to 80%.

Brazilian mining giant Vale has announced a strategic partnership with European-based hydrogen firm Green Energy Park (GEP) to launch a green hydrogen production facility aimed at low-carbon steel manufacturing in Brazil. This collaboration will facilitate the construction of a ‘Mega Hub’ industrial complex in Brazil, allowing international steel companies to source and produce hot-briquetted iron (HBI) with significantly reduced carbon emissions.

Green Hydrogen as a Key to Sustainable Steel

Steel production is one of the most carbon-intensive processes globally, releasing roughly two tonnes of CO₂ for every tonne of steel produced in traditional blast furnaces. Through this partnership, Vale and GEP plan to produce HBI using green hydrogen as the reducing agent, reducing carbon emissions by up to 80% when used in electric arc furnaces. This move represents a significant step toward decarbonizing the hard-to-abate steel sector, which currently accounts for about 8% of global CO₂ emissions.

Collaborative Efforts Supported by the EU's Global Gateway Programme

The partnership between Vale and GEP is backed by the European Union’s Global Gateway programme, which is committed to global development and emission reduction initiatives. Both companies will jointly work across the hydrogen value chain, deploying electrolysers and designing industrial plants for green hydrogen production and its derivatives. Vale’s Director of Energy and Decarbonisation, Ludmila Nascimento, emphasized the importance of Brazil's renewable energy and iron ore quality, positioning the country as a competitive supplier of ‘green’ HBI for European markets.

Brazil’s Role in Global Low-Carbon Steel Manufacturing

Vale’s green steel hub in Brazil aims to leverage the country’s abundant renewable energy resources and high-grade iron ore to support sustainable industrial growth. This industrialization effort will not only benefit the environment but also strengthen Brazil’s positioning in the low-carbon economy. GEP CEO Bart Biebuyck stated that their green hydrogen technology would offer an impactful solution to decarbonize hard-to-abate sectors, creating a competitive platform for green steel production on a global scale.

Meeting Net Zero Steel Targets with Increased Global Steel Demand

Steel remains a critical component in renewable energy infrastructure, particularly in manufacturing wind turbines. The Net Zero Steel Initiative aims for net-zero carbon emissions in the steel sector by 2050. According to GlobalData, a parent company of Power Technology, global steel demand is expected to grow by over 30% by 2050, making green hydrogen an essential component in shifting away from carbon-heavy processes.

With Vale and GEP leading this green hydrogen facility, the industry edges closer to sustainable, low-carbon steel production and sets a standard for future industrial practices worldwide.