Salzgitter Group and Baffinland to cooperate in producing low carbon green steel

06.02.2023 | Salzgitter AG

  • High-grade iron ore from Nunavut, Canada to be used in SALCOS®
  • Joint assessment of the iron ore supply strategies for hydrogen-based steel production
  • Lowering carbon emissions along the value chains

Baffinland Iron Mines Corporation (“Baffinland“) and Salzgitter Flachstahl GmbH – a subsidiary of Salzgitter AG – are strengthening their cooperation by signing a Memorandum of Understanding (MoU) to investigate the use of Nunavut high-grade iron ore in low carbon steel production.
Low carbon green steel forms the basis of the transition to clean sources of energy and is necessary for virtually every aspect of global decarbonization. Having high-grade iron ore is a prerequisite for producing green steel. Baffinland iron ore has superior chemistry combined with first-rate metallurgical properties. Baffinland’s operation is different than many others in that the iron ore is crushed and screened on site, and then shipped directly to markets – no concentrating or processing is needed, and as a result no tailings are produced.
Starting in 2025, the Salzgitter Group will begin incrementally switching its steel production to hydrogen-based processes under its SALCOS® - Salzgitter Low CO2 Steelmaking transformation program. The aim is to achieve virtually carbon-free production by 2033. In the context of the MoU, Baffinland and Salzgitter Flachstahl GmbH will consider which supply strategies regarding using iron ore produced by Baffinland are best suited to hydrogen-based steel production in a direct reduction plant. In addition, the companies will work together on optimizing the Scope 3 emissions of their shared value chains.

As Brian Penney, Baffinland’s Chief Executive Officer, states: “We are delighted to be cooperating with Salzgitter as a long-standing customer of Baffinland in realizing environmentally compatible steel production. Projects such as SALCOS® and the requisite high-grade iron ore are the key to global decarbonization in the steel industry. We applaud Salzgitter’s leadership in this regard and look forward to actively contributing our expertise to advance its flagship SALCOS® project.”
As Gerd Baresch, Head of Salzgitter Flachstahl GmbH’s Technical Division, emphasizes: “The ‘Memorandum of Understanding’ with Baffinland Iron Mines Corporation is highly significant for us in many ways. It strengthens the partnership that we have maintained for many years and supports us on our journey toward low carbon steel production. The high-grade iron ore brings with it the prospect of also being deployed in our SALCOS® - Salzgitter Low CO2 Steelmaking transformation program and of assisting us here in reducing carbon emissions along the value chains.”


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