Rio Tinto, H2 Green Steel join hands to produce green steel

Rio Tinto, a mining company, and H2 Green Steel, an industrial startup, have joined forces to create large-scale production of green steel. They have signed a multi-year supply agreement for high-grade direct reduction iron ore pellets from Rio Tinto's Iron Ore Company of Canada (IOC) operations.

This partnership will help H2 Green Steel establish its flagship plant in Boden, Sweden, which aims to be one of the world's first major producers of low carbon iron and steel.

The Boden plant, set to begin operations in 2025, will be a fully integrated, digitalised, and circular facility. It will process direct reduction pellets into hot briquetted iron (HBI) and then use electric arc furnaces powered by green hydrogen to produce steel. The site will also house one of the world's largest electrolysis plants for green hydrogen production.

Steel production currently contributes about 8% of global carbon emissions. However, by using green hydrogen instead of coal in the steelmaking process, CO2 emissions can be reduced by up to 95%. This shift to green steel production is crucial for achieving net-zero energy transition and building sustainable infrastructure.

H2 Green Steel's CEO, Henrik Henriksson, sees this partnership as a significant milestone for their project. Not only will they have a reliable supply of high-quality iron ore for their green steel production, but they also have a buyer for a portion of the HBI they expect to produce initially. Henriksson welcomes Rio Tinto's commitment to decarbonising the steel industry.

Rio Tinto's Head of Steel Decarbonisation, Simon Farry, explains that their collaboration with H2 Green Steel is part of their efforts to support the decarbonisation of iron and steel making. By supplying high-grade iron ore pellets and on-selling low-carbon HBI, Rio Tinto aims to gain a deeper understanding of the future needs of customers and end-users in the emerging green iron and steel market.