Rio Tinto plans to make its Canadian and Australian iron ore products
available for use in Salzgitter's SALCOS green steel project in Germany.
Under a planned agreement, Rio Tinto and Salzgitter will explore
optimisation of iron ore pellets, lump and fines for use in hydrogen direct
reduction steelmaking. The two companies will also explore the potential for
greenhouse gas emission certification across the steel value chain.
Rio Tinto produces iron ore pellets and concentrate at Iron Ore Company
of Canada and iron ore lump and fines in Western Australia's Pilbara region.
The partnership will focus on the potential use of these products in the SALCOS
- Salzgitter Low CO2 Steelmaking programme, which is targeting virtually
carbon-free steel production, starting step-by-step in 2025 using hydrogen
direct reduction.
Rio Tinto Chief Commercial Officer Alf Barrios said "We welcome the
chance to work with Salzgitter on ways to accelerate green steelmaking, in
keeping with our commitment to reduce emissions across the steel value chain.
"Salzgitter has one of the world's most advanced green steelmaking
projects. Rio Tinto is excited at the opportunity of supplying our product and
combining our technical expertise with that of Salzgitter to help advance the
SALCOS project."
Salzgitter Flachstahl's chairman, Ulrich Grethe, said "With this
alliance, we want to combine the knowledge of both companies to make further
progress with low-carbon steel production.
"In this context, the Salzgitter Group is relying on strong
partners, as set out in our ‘Salzgitter AG 2030' Group strategy, in line with
its motto of ‘Partnering for Circular Solutions'."
Rio Tinto is committed to reaching net zero emissions by 2050 and is
targeting a 15% reduction in Scope 1 & 2 emissions by 2025 (from a 2018
baseline) and a 50% reduction by 2030. Rio Tinto's approach to addressing Scope
3 emissions is to engage with its customers on climate change and work with
them to develop the technologies to decarbonise.
Under the SALCOS program, Salzgitter's carbon-based blast furnace route
will gradually be replaced from the middle of this decade by direct reduction
plants, initially operated by natural gas and then with a steadily increasing
proportion of hydrogen.