Brazilian mining company Vale has announced that it has officially started a project to build a new industrial iron ore briquette plant in Louisiana, following discussions with the US Department of Energy (DOE). The company has received $3.8 million in funding to conduct engineering studies and engage with local communities in the first stage of the project. This process will continue through 2025.
The support for Vale USA LLC is provided under the DOE's Industrial Demonstration Program (IDP), which will provide up to $282.9 million in total funding through 2031.
The new facility will focus on the production of innovative iron ore briquettes optimized for direct reduced iron (DRI) technology. The plant, which is planned to have an annual production capacity of 1.5 million tons, is said to have a structure that can increase its production in the future. The strategic location on the banks of the Mississippi River offers quick and easy access to existing and potential customers in the US.
Compared to conventional methods, the technology developed by Vale provides significant reductions in carbon, sulfur oxide (SOx) and nitrogen oxide (NOx) emissions, while minimizing water use. The company's initiative is considered a step in line with its goals of reducing Scope 3 emissions by 15% by 2035 and achieving carbon neutrality by 2050.
Vale CEO Gustavo Pimenta said that this project is an important step not only for environmental sustainability, but also for the transformation of the US steel industry. “This project is a groundbreaking step towards providing lower emission solutions for our customers. Coupled with the US leadership in electric arc furnace (EAF) steelmaking, we believe this innovation will bring both environmental and economic benefits to the region,” said Pimenta.
In addition, a technical cooperation agreement between Vale and Midrex Technologies adds to the importance of the project. It involves the companies working together to test the use of innovative briquettes in direct reduction plants and to develop solutions in this area.
Vale's new plant in Louisiana is seen as an important step towards achieving its sustainability goals. The company will develop this project in collaboration with local communities and industry partners for both environmental and economic benefits.
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