The Vice President of Institutional Relations at Brazil Iron, Emerson Souza, detailed on Thursday (30) the green iron production project in Bahia, presenting it as a key solution for the decarbonization of the global steel industry. The statement was given in an interview with Classe Política.

“We are talking about a project—its name is Green Iron—because Green Iron is the final product we will produce here in the state of Bahia. But it’s more than that; it’s a decarbonization project,” explained Emerson Souza.

The executive highlighted the project’s urgency in the context of the climate crisis. “Today we are living in a climate emergency that I believe everyone is aware of, and we need to shift our economy toward a low-carbon model,” he stated.

Emerson pointed out the steel industry’s heavy contribution to global greenhouse gas emissions. “One of the biggest contributors to greenhouse gases in the atmosphere, which cause global warming, comes from carbon emitted by the steel industry. This carbon represents 8% of all global emissions,” he revealed.

When asked how to transform this economy, the vice president described the technological change required. “Instead of coal furnaces, we are moving toward electric furnaces. But not every kind of iron can be economically converted into steel—it requires a specific type of material,” he explained.

Emerson emphasized Bahia’s competitive advantage in this context. “Bahia is blessed because its land contains iron ore with unique and essential characteristics that allow it to be transformed into the final product,” he noted.

The executive also explained the Green Iron production process. “Green Iron is simply iron ore extracted from the ground that goes through three stages of beneficiation until it becomes the final product—a bar with around 93% iron concentration,” he said.

“This product can indeed be transformed into steel in an electric furnace, rather than a coal furnace, and it will be produced here in Bahia,” concluded Emerson Souza.

The Project

The Ferro Verde Project involves an investment of US$ 5.7 billion and includes the beneficiation of iron ore, the construction of a 120 km railway branch, and the installation of steel plants, with the expectation of generating more than 55,000 direct and indirect jobs. Brazil Iron has already invested R$ 1.7 billion in Bahia, a figure not included in the project’s total estimated capital.

Considered an essential input for transforming the global steel industry, Ferro Verde focuses on producing Hot Briquetted Iron (HBI). The technology allows polluting coal furnaces to be replaced by electric models capable of reducing carbon dioxide emissions by up to 99%. By using high-grade iron ore and 100% renewable energy, the project positions itself at the forefront of the steel sector’s energy transition.

Source: Ferro Verde: VP da Brazil Iron explica projeto solução para descarbonização da indústria do aço