Vale and GEP partner in hunt for Brazilian green hydrogen opportunities
SAO PAULO, Oct 1 (Reuters) -Brazilian miner Vale VALE3.SA and Green Energy Park have agreed to team up to explore opportunities for green hydrogen production in the South American country, the mining giant said on Tuesday.
WHY IT'S IMPORTANT
Brazil has been looking to develop a green hydrogen industry as part of efforts to unlock new sectors to power its energy transition, with the government dubbing it a "real possibility" for the country to expand its footprint in renewables.
Vale meanwhile wants to focus on low-carbon initiatives for the steel industry as it aims to reach net-zero carbon emissions by 2050.
GOALS
Vale and GEP will jointly study the feasibility of building a green hydrogen plant in Brazil so it could eventually supply a "mega hub" the miner expects to develop in the country, according to a statement.
As part of its decarbonization efforts, Vale plans to make in the "mega hubs" iron ore agglomerates - pellets or briquettes - that would serve as an input for hot-briquetted iron, which would have renewable hydrogen as reducing agent.
KEY QUOTES
"Vale has been actively seeking partners to enable the construction of mega hubs in Brazil," the mining giant said. "The agreement with GEP is another important step in this direction."
BACKGROUND
Green hydrogen can be obtained by the electrolysis of water using renewable power and has emerged as an important way to lower emissions from sectors that are hard to decarbonize, such as transport and steelmaking.
GEP had previously partnered with Brazil's Eletrobras ELET6.SA to study green energy opportunities, while Vale has inked similar partnerships with H2GS and Hydnum Steel as it mulls building "mega hubs" in several countries.
Reporting by Gabriel Araujo; Editing by Jan Harvey
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
