Chinese Steelmaker HBIS and Vale Sign MOU for Steel Decarbonisation

Wedoany.com Report-Mar 24, Chinese steelmaker HBIS Group has signed a memorandum of understanding (MOU) with Brazilian mining giant Vale to advance decarbonisation within the steel value chain.

HBIS and Vale have set a target to achieve carbon neutrality by 2050.

This collaboration aims to address climate change by exploring innovative decarbonisation technologies for a low-carbon transition in the steel industry.

The partnership will focus on identifying optimal burden solutions and assessing the feasibility of using the Tecnored furnace for waste treatment and metal recovery.

HBIS chairman Liu Jian said: “The signing of the MOU on the cooperation for decarbonisation of the steel industry value chain represents a joint action by two major international enterprises in the upstream and downstream of the industrial chain to address climate change.”

The collaboration is expected to explore technologies such as hydrogen metallurgy, carbon capture, utilisation, and storage, and circular economy solutions. Both companies have set a target to achieve carbon neutrality by 2050.

The steel sector, which accounts for approximately 7% of global carbon dioxide emissions, has seen steelmakers worldwide seeking partnerships with mining companies to facilitate a greener transition.

In October 2024, Vale collaborated with European integrated hydrogen company Green Energy Park on a green hydrogen production facility in Brazil, focusing on low-carbon steel manufacturing.

Recently, HBIS became a Worldsteel Updated Sustainability Charter member after meeting the required standards.

The Charter, launched in 2009 and reviewed every three years, outlines principles and criteria that reflect the steel industry’s commitment to sustainable development.

HBIS also launched China’s first Low Carbon Development Roadmap to focus on carbon peaking and carbon neutrality goals.

The company is developing six major technologies and two management platforms to meet its 2050 carbon neutrality targets.