Vale and European GEP close agreement to evaluate green hydrogen production in Brazil (Image: REUTERS/Adriano Machado)
A Vale (ELECTION 3) announced this Tuesday (01) a partnership with the European Green Energy Park (GEP) to study the feasibility of installing a green hydrogen production unit in Brazil.
The expectation is that, in the future, the plant will be able to supply renewable fuel for Vale's “mega hub”, an industrial complex that will be built in the country to manufacture low-carbon steel products, as part of the mining company's decarbonization strategy.
According to the companies, the joint initiative could create a platform open to international partnerships, in which global steel mills will be able to acquire and produce HBI (“hot-briquetted iron” or sponge iron) in Brazil, an intermediate product between iron ore and steel. which is seen as important for the decarbonization process of the steel chain.
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“We are taking advantage of Brazil’s competitive advantages, such as iron ore of high quality and abundant renewable energy, to potentially develop the supply of green hydrogen, which will allow the offer of a 'green' HBI with high added value to European steel mills”, said Ludmila Nascimento, director of Energy and Decarbonization at Vale, in communicated.
“At the same time, we induced the neo-industrialization of Brazil, based on a low-carbon economy, and contributed to the fight against climate change,” added the executive.
Green Energy Park, which is supported by Europe's Global Gateway program, intends to build and operate an integrated hydrogen production plant, including state-of-the-art electrolyzer technology, storage and handling facilities for hydrogen and its derivatives.
In Brazil, GEP has already signed an agreement with Eletrobras (ELET3) for the company to supply long-term renewable energy for its green hydrogen project in Piauí.