Green iron connects Bahia to international demand for decarbonized steel

Foto: Divulgação/Bahia Export

Called HBI, the product is already arousing the interest of large industries for more sustainable operations

Bahia stands out as one of the main mineral producers in Brazil and the world and, within a short and medium-term scenario, the state can be a major supplier of HBI, an acronym for the so-called green iron, which is iron ore processed without the use of fossil fuels, such as coal and natural gas. Even though it is little known in the international market, it can bring large investments to Brazil.

In Bahia, Brazil Iron stands out within the transition scenario to low-emission steel production. The company’s Vice President of Institutional Relations, Emerson Souza, presented the current scenario of the green iron during Bahia Export, the State Forum of Logistics, Infrastructure and Transport.

According to the executive, the production of the material follows the line of decarbonization of the steel industry. “Basically, 8% to 10% of greenhouse gas emissions come from the steel industry. So, it is very important for us to change our energy base to a low-carbon base. For this transition, you have to change the furnace, coal-fired, to an electric arc furnace. But the furnace only works, it only has the ability to transform iron ore into steel with a specific type of ore, which is exactly green iron,” he explained.

Souza said that of 100% of the iron ore distributed around the world, only 3% of this capacity has characteristics for the production of HBI. He highlighted the state’s potential for the development of the product.

The Brazil Iron executive pointed out that the demand in the international market, even though it is a material considered to be of low knowledge, is very high in a projection for the next ten years.

“The Japanese government already provides a subsidy of $380 per ton for the transition from impure steel to green steel. In Europe, from 2026, all steel production that is not 100% decarbonized will be tariffed. And then I bring the conclusion, that our projection is to start production from 2030. From the moment we connect to our green iron industry, the first ten years of production are already sold. The market has already bought. It’s not that I’m going to go out to sell, the market has already bought ten years of production, which already guarantees a revenue of 30 billion dollars from this investment,” he concluded.

Participating in the panel were Henrique Capballal, president of the Bahia Mineral Research Company (CBPM); Marcelo Silvestre, president of Galvani Mineração; and Tony Lima, COO of Atlantic Nickel. The moderation was by Georgina Maynart, journalist from Rede Bahia (TV Globo).

Publication source: Ferro verde conecta Bahia à demanda internacional por aço descarbonizado | BE News