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Japanese steel mill Nippon Steel and Brazilian mining group Vale have signed an agreement to study the decarbonisation of steelmaking.

 

The firms will jointly explore the potential use of green raw materials for steelmaking. Such materials include direct reduced iron (DRI), which is generated from iron ore by removing oxygen without melting, and molded pig iron, made by using biomass-based carbon materials for melting. Nippon Steel is considering incorporating biomass like eucalyptus and sugarcane to process Vale's iron ore and produce molded pig irons. The firms also aim to introduce briquettes molded by using pressure instead of heating.

 

The firms did not specify the terms of their collaboration, but the agreement includes short- and long-term projects.

 

Nippon Steel has set a target to achieve a 30pc reduction from its total CO2 emissions of 102mn t in 2013 by 2030, and carbon neutrality by 2050. The firm is attempting to manufacture DRI by using natural gas, and it aims to use carbon-free hydrogen in future. It also plans to build a large scale DRI electric arc furnace for high-quality steel production to improve its competitiveness and achieve its decarbonisation goals.

 

Nippon Steel has been struggling to optimise its operations amid increasing international competition. The firm in September 2021 decided to close the entire Kure steel works by 2023.