By Pierre Bertrand

 

Salzgitter AG and Rio Tinto Ltd said Tuesday that they have signed an agreement to collaborate on reducing the amount of carbon emitted when making steel.

Under the memorandum of understanding signed, the two companies will study technical aspects of steelmaking with the use of hydrogen, the companies said.

The agreement focuses on the Australian mining company's iron ore products and their use in a virtually carbon-free steel production process being designed by Salzgitter.

The new hydrogen-powered steelmaking program is intended to gradually replace the German company's carbon-based blast furnaces and reduce CO2 emissions by 95% by 2033.

Included in the agreement is the expansion of supply chains and, potentially, obtaining certification of their greenhouse gas emissions levels, the companies said.

This agreement follows a similar cooperation deal struck last week between Salzgitter and Swedish miner Luossavaara Kiirunavaara AB to help implement Salzgitter's hydrogen-powered steelmaking program.

 

Write to Pierre Bertrand at pierre.bertrand@wsj.com

 

(END) Dow Jones Newswires

June 07, 2022 06:05 ET (10:05 GMT)

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