Brazilian mining company Vale and steel producer China Baowu Steel Group have partnered to develop green steelmaking solutions.
The two parties entered a memorandum of understanding (MoU) for this purpose.
The MoU allows the firms to pursue opportunities to develop steelmaking solutions with a focus on reducing greenhouse gas emissions.
As part of the effort, the duo aims to produce biochar and use it in blast furnaces. This would make use of a carbon-neutral material that is based on biomass, rather than fossil fuels.
Vale is also considering a possible investment of $9.3m-10.9m (CNY60m-70m) in China Baowu’s pilot biochar plant project.
The move is expected to contribute to Vale’s commitment to reducing net Scope 3 emissions by 15% by 2035.
The Brazilian miner has also set a target to reduce 33% of absolute Scope 1 and 2 emissions by 2030 and become a carbon-neutral firm by 2050.
Reporting around 115 million tonnes (Mt) of crude steel production last year on a consolidated basis, China Baowu is claimed to be the biggest steel producer in the world.
Vale and other firms are increasingly prioritising green steelmaking to reduce CO₂ emissions.
Vale recently signed an MoU with South Korea’s steel firm POSCO to develop solutions for sustainable steel production.
Last month, Australian mining firm BHP also partnered with POSCO for similar reasons, agreeing to jointly explore ways to optimise coke quality, as well as assess carbon capture storage and utilisation options.