Vale, ROGESA ink multi-year pellet supply deal to decarbonise steelmaking

• ROGESA plans to shift to hydrogen-based steelmaking
  
  

Mysteel: Brazilian mining giant Vale has concluded a multi-year supply agreement for pellets with Roheisengesellschaft Saar mbH (ROGESA), a joint subsidiary of Germany steel producers Dillinger and Saarstahl AG, according to a statement from the miner on Wednesday.

Under the agreement, Vale will first supply ROGESA with blast furnace-grade pellets during 2025-27. Following the commissioning of ROGESA's direct reduction plant at the Dillingen site, the feedstocks will be gradually shifted to direct reduction pellets from 2028, the release said.

Vale's cooperation with ROGESA marks a critical step forward in reducing carbon emissions from the steel industry, the mining giant stated.

Equipped with high-quality input materials from Vale under the new agreement, ROGESA will be able to use its direct reduction plant and electric arc furnaces to produce environmentally friendly steel, using hydrogen to convert the iron ore into hot-briquetted iron (HBI) instead of using coking coal.

Vale has been committed to decarbonising the steelmaking process. Apart from the latest cooperation with ROGESA, the miner also partnered with Midrex Technologies this September to advance iron ore briquette use in direct reduction plants, which could also reduce carbon emissions.

Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.