The Ferro Verde project by Brazil Iron promises to put Bahia and Brazil on the global map of decarbonizing the steel industry. With production expected to begin in 2030 and investments already exceeding BRL 1.7 billion in research, the initiative will be the first in the country to produce Hot Briquetted Iron (HBI)—a product known as “green iron”—with a net zero balance of greenhouse gas emissions.

“Ferro Verde is a decarbonization project. Period,” summarizes Emerson das Neves Souza, vice president of Institutional Relations at the company. He explains that HBI is a product of extremely high purity—containing at least 93% iron—that can replace traditional ore in steelmaking without using coal, relying solely on electric furnaces powered by renewable energy. The result is a clean, efficient, and cost-effective process. “It’s green both ways,” says Emerson. “Backwards, because its production uses renewable energy; forwards, because it helps reduce emissions from steelmaking, which currently accounts for 8% of global CO₂.”

The path to this innovation began eight years ago with the discovery of high-purity iron deposits in the region of Piatã, Abaíra, and Jussiape, in Chapada Diamantina. This type of ore is rare—only 3% of global reserves have the necessary characteristics for HBI production. The company sent samples to Germany and England for metallurgical testing, confirming the potential of the Brazilian material.

The project foresees three processing plants: the first, located in Piatã, will produce purified pellet feed; the second and third, in the Bahian port area, will carry out the final transformation stages to produce green iron briquettes. The last unit will be built using technology licensed from Midrex, the American global leader in HBI production. “We will build here a plant identical to the most advanced one currently existing in the world,” says Emerson.

With support from federal and state governments, Brazil Iron estimates implementation will begin in 2026. The goal is to reach 5 million tons of HBI annually, representing a significant share of global production—which totaled only 25 million tons in 2024.

Among the main challenges is logistics: the mines are about 550 kilometers from the port. The company is betting on the expansion of Bahia’s railway network as a structural solution, although it maintains alternative road and intermodal plans. “No mining project is sustainable without efficient logistics,” the executive notes.

On the social front, Brazil Iron admits to having learned from past mistakes. Dialogue with communities has been expanded and institutionalized even before the preliminary license was granted. “We created, over two years ago, a monitoring committee for the project, something that normally only exists after licensing,” highlights Emerson. According to him, perceptions in the affected cities have evolved from distrust to support. “We understood that if the receiver doesn’t understand the message, the fault lies with the sender. Today, communication is much more effective.”

The partnership with the Bahian Mineral Research Company (CBPM) was crucial in this process of cultural engagement and incorporating “Bahian identity” into the project. “It’s pointless to think about economic development and environmental sustainability if we don’t first think about people,” summarizes Emerson, quoting CBPM president Antonio Carballal.

More than just a mining venture, Ferro Verde presents itself as a model of industrial and territorial transition, combining technological innovation, carbon neutrality, and local development. “A well-executed mining project can generate positive impacts, including social and environmental ones. That’s what we want to prove in Bahia,” concludes Emerson das Neves. (Mara Fornari)

Source: Ferro Verde is Brazil Iron’s bet to decarbonize steelmaking