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[Ferro-Alloys.com] Brazilian miner Vale SA VALE3.SA signed an agreement with French sustainable iron ore company GravitHy to seek solutions to produce carbon-neutral steel, it said on Tuesday.

The agreement will focus on studies to build a factory to produce briquettes from Vale's high-grade iron ore through direct reduction, a steel making method.

Vale's briquette is an iron ore agglomerate that reduces emissions in the steelmaking process in the blast furnace route and emits less CO2 when compared to pellets. The product is part of the company's plans to achieve its commitment to reduce scope 3 net emissions by 15% by 2035.

The briquette factory would be located in Fos-sur-Mer, France, next to GravitHy's first Direct Reduction Iron (DRI, also known as sponge iron) plant.

GravitHy's plant is designed to produce DRI using hydrogen as a reducing fuel, substantially cutting carbon emissions in the steelmaking chain when compared to the blast furnace route, and is set to be traded globally in the form of hot-briquetted iron (HBI).

"This reinforces Vale's confidence in the direct reduction route and the use of hydrogen to enable the decarbonization of the steel industry," the mining company said in a statement.

Vale also aims to achieve net zero by 2050, in line with the Paris Agreement.

  The 19th China Ferro-alloys International Conference, co-hosted by China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters (CCCMC) & Ferro-Alloys.com ，Supported by China Ferroalloys Industrial Association, will be held on 31 May to 2 June 2023 in Beijing, China. By the end of 2022, China has fully lifted control of the epidemic and introduced proactive and prudent macroeconomic policies. The Conference will provide a platform for sharing macro-economic situation worldwide and discussing industry-wide emerging role of the Ferroalloys industry as potential backbone for economic growth of China. You are cordially invited to shape up ideas and present their visions for new business and investment opportunities at 19th INFACON at Beijing, China. Get in the room with decision makers along your supply chain to gauge market sentiment, explore new opportunities, meet old friends, and form your view of how 2023 might play out. Join us at the 19th INFACON 2023.

• [Editor:tianyawei]