Vale and GEP team up to explore green hydrogen in Brazil

The mining giant Vale announced on Tuesday that it has teamed up with Green Energy Park to explore the possibilities for green hydrogen production within the South American nation.

Why it's important

Brazil is looking to develop green hydrogen as part of its efforts to unlock new industries to power its energy transformation. The government has called it a "real opportunity" for the country's footprint to expand in renewables.

Vale wants to concentrate on low-carbon initiatives in the steel industry, as it strives to achieve net-zero emissions of carbon by 2050.

Vale and GEP are jointly studying the feasibility of building an environmentally friendly hydrogen plant in Brazil to eventually supply the "mega hub" that the miner hopes to develop in Brazil.

Vale will make iron ore pellets and briquettes in its "mega hubs", which it plans to use as an input into hot-briquetted ferrous metal, with renewable hydrogen as the reducing agent.

KEY QUOTES

The mining giant stated that "Vale actively sought partners to allow the construction of mega hubs" in Brazil. The agreement with GEP represents another important step.

BACKGROUND

Green hydrogen is produced by electrolysing water with renewable energy. It has become a popular way to reduce emissions in sectors like transport and steelmaking that are difficult to decarbonize.

GEP had previously partnered up with Brazil's Eletrobras in order to explore green energy opportunities. Vale, on the other hand, has formed similar partnerships with H2GS as well as Hydnum Steel in an effort to build "mega hubs". (Reporting and editing by Jan Harvey; Gabriel Araujo)

(source: Reuters)