Vale S.A., a global mining giant, and GreenIron H2 AB, a Swedish green technology company, have signed a Memorandum of Understanding (MOU) to collaborate on decarbonizing the mining and metals industry. The partnership was announced on January 7 and will focus supplying low-carbon iron ore products.

A key element of the MOU is a joint feasibility study for a cutting-edge direct reduction facility in Brazil, to be operated by GreenIron. This study will encompass several critical aspects like identification of suitable location for the facility, assessment of renewable energy sources and resource availability, and evaluation of potential of green hydrogen and other innovative technologies to minimize environmental impact. Brazil's favorable position in green hydrogen production makes it an ideal location for such a project.

In addition to the Brazilian venture, the agreement addresses the supply of Vale's iron ore to GreenIron's commercial operations in Sandviken, Sweden. This collaboration builds on two years of prior testing using Vale’s iron ore pellets at GreenIron’s facilities. Future tests will also incorporate Vale's innovative iron ore briquettes, a product engineered to emit less CO2 during production compared to traditional pellets.

GreenIron's technology is designed for flexibility, accommodating various feedstock options and allowing for tailored capacity to meet specific client needs. It is also cost-effective and compatible with green hydrogen, making it a strong contender for sustainable iron production. GreenIron's commercial operations in Sandviken are currently undergoing commissioning, with a scale-up expected in 2025.

The partnership reflects a shared commitment to reducing the carbon footprint of the mining and metals sector. By combining Vale’s extensive product portfolio and expertise in iron ore production with GreenIron’s innovative technology and focus on sustainable practices, the two companies aim to create impactful low-carbon solutions.

“This agreement brings together Vale’s superior product portfolio, Brazil’s competitive advantage on green hydrogen and GreenIron’s expertise on sustainable iron production to provide low-carbon solutions for the mining and metals industry,” said Rogério Nogueira, EVP of Commercial and New Business at Vale. He emphasized Vale's dedication to assisting clients in achieving their decarbonization goals and promoting Brazil's industrial growth.

Edward Murray, CEO of GreenIron, echoed this sentiment, stating, “This MOU with Vale marks a significant milestone for GreenIron. It represents a clear commitment to pursue collaborative opportunities that align with our vision for a sustainable mining and metals industry, and to drastically reduce the sector’s climate footprint. By pooling our expertise and resources, we aim to innovate and develop projects that not only benefit both companies but also positively impact the environment and the communities in which we operate.”