On November 1, Hyundai Steel announced that it has signed an MOU with the Brazilian mining company Vale, one of the world’s largest mining companies, to achieve its carbon neutrality goals by 2050.
The partnership signifies a move to explore joint undertakings by the companies to reduce greenhouse gas emissions and develop low carbon materials.
In the midst of increasing global demands for reduction in carbon emissions, Hyundai Steel and Vale signed an MOU based on a common understanding of reduction in greenhouse gas emissions through securing competitive low carbon materials.
Both companies have adopted the same goal of realizing carbon neutrality by 2050. Steel consuming industries, such as the automotive industry, are expected to greatly increase their demands for low carbon steel plates to achieve their own carbon reduction targets in the future.
Hyundai Steel and Vale plan to engage in talks on various topics to evaluate the feasibility of their greenhouse gas emissions reduction plans and low carbon steel source solutions.
The signing of the MOU is anticipated to result in a feasibility review of using iron ore briquettes as a low carbon substitute for steel sources. As a low carbon steel source produced at low temperatures of around 200 ℃, iron ore briquettes were developed to be used as a substitute for the sinter, lump ores and pellets used in blast furnaces.
In addition to iron ore briquettes, Hyundai Steel plans to conduct technical and feasibility reviews for other low carbon steel sources including high grade pellets and hot briquetted iron (HBI). Hyundai will also review the possibility of commercializing developed products through the establishment of joint ventures and other means in the future.
“Our partnership with Vale will increase opportunities for collaboration in all areas of the low-carbon steel source business,” a Hyundai Steel spokesperson said. “Hyundai Steel will continue to pursue technical partnerships to reduce carbon emissions in the steel industry.”