Leading global miner Anglo American has signed a memorandum of understanding (MoU) with Swedish hydrogen and steel producer H2 Green Steel.
The MoU outlines how the two companies can work together to develop low-carbon steelmaking processes, including an examination and testing of premium iron ore products from Anglo American’s Kumba mines in South Africa, where it has a 69.7 per cent majority share in Kumba Iron Ore.
In addition, Anglo American’s Minas-Rio mine in Brazil will act as feedstock for H2 Green Steel’s direct reduced iron (DRI) production process at its Boden plant in Sweden.
Anglo American chief executive officer – marketing Peter Whitcutt said collaborating with industry leaders who share a vision for decarbonised steelmaking was central to its commitment to reduce emissions in its value chains.
“Our work with H2 Green Steel will focus on exploring ways for premium, responsibly produced iron ore from our operations to be used as feedstock in the Boden plant’s low-carbon production process, paving the way to a cleaner, greener way to produce steel,” Whitcutt said in an announcement.
H2 Green Steel’s chief procurement officer Luisa Orre said the company was impressed by Anglo American’s efforts to supply high-quality iron ore products with a focus on low carbon iron and steelmaking.
“(H2 Green Steel’s) purpose is to decarbonise hard to abate sectors, and this is only possible with strong partnerships along the value chain with a true commitment to reducing Scope 1, 2 and 3 emissions,” Orre said.
“We look forward to continue working with them, not only for our first green hydrogen integrated steel plant in Sweden but for other future locations globally.”