Brazilian mining giant Vale and European hydrogen company Green Energy Park (GEP) have announced a collaboration to build a green hydrogen production facility in Brazil, aiming to produce low-carbon steel. The joint venture will establish a ‘Mega Hub’ industrial complex, where international steelmakers can source and produce hot-briquette iron (HBI) using green hydrogen as the reducing agent.
This initiative is expected to cut carbon emissions by 80% compared to traditional blast furnaces, which emit two tonnes of CO₂ for every tonne of steel produced. The project, supported by the EU’s Global Gateway programme, also includes the deployment of electrolysers and industrial plant designs to further expand the hydrogen value chain.
Vale and GEP’s collaboration highlights Brazil’s advantage of high-quality iron ore and renewable energy, positioning the country as a hub for low-carbon industrialisation. The global steel industry, responsible for 8% of total carbon emissions, is targeting net zero by 2050 under the Net Zero Steel Initiative.