Anglo American has signed a memorandum of understanding with Swedish steel producer H2 Green Steel to work in tandem to advance low-carbon steelmaking processes.
Under the terms of the deal, the two will study and trial iron ore from Anglo’s Kumba mines in South Africa and Minas-Rio mine in Brazil, which will serve as feedstock for H2 Green Steel’s direct reduced iron (DRI) production process at its Boden plant in Sweden.
Anglo American Marketing CEO Peter Whitcutt said the two “share a vision for decarbonised steelmaking” that is central to its commitment to reduce emissions.
“Our work with H2 Green Steel will focus on exploring ways for premium, responsibly produced iron ore from our operations to be used as feedstock in the Boden plant’s low carbon production process, paving the way to a cleaner, greener way to produce steel – one of the backbone materials for the roll-out of energy transition infrastructure and for ongoing global socio-economic development,” he said.
H2 Chief Procurement Officer Luisa Orre added: “Our purpose is to decarbonise hard to abate sectors, and this is only possible with strong partnerships along the value chain with a true commitment to reducing scope 1, 2 and 3 emissions. We are impressed by Anglo American’s efforts to bring high-quality iron ore products to customers which focus on low carbon iron and steelmaking, and we look forward to [continuing] working with them, not only for our first green hydrogen integrated steel plant in Sweden but for other future locations globally.”
H2 Green Steel was launched in 2021 to accelerate the decarbonisation of the steel industry by using green hydrogen; it is currently developing a DRI plant in Boden, northern Sweden, which will produce green steel, reducing CO₂ emissions by up to 95% compared to traditional steelmaking.
Anglo has committed to a 50% reduction in Scope 3 emissions by 2040. In its mission, confirmed in 2021, it said it wanted to build on a pre-existing commitment to reach operational (i.e., Scope 1 and 2) carbon neutrality by the same year.