Brazilian company Vale has inaugurated the world's first iron ore briquette plant at its Tubarão Unit in Vitória. This innovative product, engineered by Vale, holds the promise of transforming the steel industry by potentially slashing greenhouse gas (GHG) emissions in blast furnaces by up to 10%. Moreover, it lays the foundation for achieving zero-emission steel in the future, particularly when green hydrogen becomes widely available.
The inauguration of the briquette plant not only aligns with global emission reduction targets set by governments but also contributes significantly to Brazil's neo-industrialization efforts, with a focus on low-carbon industry practices.
Governor Renato Casagrande of Espírito Santo emphasized the harmony between Vale's decarbonization plans and the state's broader environmental goals. The first plant commenced operations in 2023, with a second facility slated to open early next year. Collectively, these plants will boast an annual production capacity of 6 million tons, requiring a substantial investment of US$ 256 million and creating 2,300 job opportunities.
The state's commitment to sustainability is evident as over 30 companies have expressed interest in receiving briquette shipments by 2024, with the initial two years dedicated to testing the product's efficacy at client facilities.
Anticipated production estimates for 2024 reveal that the Tubarão plants will manufacture approximately 2.5 million tons, gradually scaling up to the full capacity of 6 million tons annually. The steel industry's decarbonization journey will unfold progressively, with clients exploring ways to enhance operational efficiency, reduce energy consumption, and curtail CO2 emissions through the utilization of Vale's cutting-edge briquette technology.
Vale's foray into the realm of briquettes commenced two decades ago at the Ferrous Technology Center (CTF) in Nova Lima. The company is actively working on a version tailored for the direct reduction route, with the potential to replace sintering and achieve significant GHG emission reductions for customers.
In direct reduction steel production, Vale is exploring the use of natural gas as an alternative to coke, producing hot-briquetted iron (HBI) – an intermediary product positioned between iron ore and steel. Agreements with countries such as Saudi Arabia, the United Arab Emirates, and Oman signal Vale's ambition to establish Mega Hubs – industrial complexes dedicated to HBI production – in regions with abundant natural gas.
This strategic move aligns with Vale's broader commitment to reduce scope 3 emissions by 15% by 2035. The company has already engaged with over 50 clients, accounting for 35% of these emissions, by offering decarbonization solutions. One innovative proposal involves constructing briquette plants directly on customer premises.
Furthermore, Vale is targeting a 33% reduction in net direct and indirect carbon emissions by 2030, marking a pivotal step towards achieving zero net emissions by 2050. The launch of the iron ore briquette plant solidifies Vale's position as a trailblazer in sustainable steel production, heralding a new era for the industry.
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