Açu Port eyes leadership role in Brazil’s steel chain decarbonization through partnership with Vale

Vale and Porto do Açu have signed a Memorandum of Understanding (MoU) to study the development of a Mega Hub in northern Rio de Janeiro state for the production of HBI (“hot briquetted iron”). The industrial complex will initially receive pellets from Vale and may include an iron ore briquette plant to feed the HBI plant, an essential raw material for decarbonizing the Brazilian steel industry.

This is a first-of-its-kind initiative as it involves a technical study coordinated by Açu Port and industry experts proposing the use of HBI as a partial charge in blast furnaces, reducing greenhouse gas emissions and increasing the productivity of the steelmaking process without the need to replace existing assets such as blast furnaces and steel mills. Currently, HBI is more commonly used in electric arc furnaces, but most Brazilian steelmakers use blast furnaces. Using HBI in this type of furnace will allow for a smoother transition in the decarbonization process.

According to the agreement, Vale will study alternative supplies of iron ore agglomerates, such as pellets or briquettes. With this commitment in place, the companies will seek to attract investors and customers to build and operate the HBI plant.

The project envisions the production of HBI using natural gas, which will be available at Açu Port, with the possibility of converting it to green hydrogen in the future, producing HBI with near-zero carbon emissions.

The recently signed MoU is another step for Vale in developing a Mega Hub in Brazil, industrial complexes focused on producing low-carbon steel products, which the company is implementing in three Middle Eastern countries (Saudi Arabia, the United Arab Emirates, and Oman).

“We believe that Brazil has great potential to become a hub for low-carbon steelmaking. We have high-quality iron ore, abundant natural gas reserves, and the potential to develop green hydrogen. As a Brazilian company, Vale seeks to partner with projects that contribute in this direction. We want to drive Brazil’s ‘neo-industrialization,’ which will be based on green industry,” says Marcello Spinelli, Executive Director of Iron Ore Solutions.

“The signing of this partnership demonstrates how great it is the potential for industrializing the Açu Port, confirming its vocation as the driver of energy transition in Brazil. We believe that Açu, with its unique port infrastructure, strategic location, and potential for the most competitive prices for Brazilian natural gas, has unique characteristics to, along with Vale, contribute to the decarbonization of the domestic and international steel industry,” says José Firmo, CEO of Porto do Açu.

“Brazil is one of the world’s largest producers of iron ore and steel, with Vale playing a leading role in this marUsingse of HBI in blast furnaces can reduce greenhouse gas emissions by around 25%, with even greater potential reductions throughout the supply chain, aligning the industry with emissions reduction goals by 2030. With Porto do Açu as the gateway for zero-carbon industrialization projects, all conditions and analyses point to Brazil becoming a major HBI producer, supplying steel mills worldwide,” predicts Albano Vieira, Consultant for Steel and Mining at Prumo, the holding company that develops Porto do Açu.

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