Japanese steel producer Kobe Steel Ltd has announced that its US based wholly-owned subsidiary Midrex Technologies, Inc (Midrex) has signed a non-binding agreement with Brazilian miner Vale S.A. and Japan-based steel producer Mitsui & Co. in order to collaborate in providing low CO2 iron metallics and iron-making solutions to the global steel industry.
The company stated that steel is an essential material for many other industries with its advantages of resource availability, manufacturing costs and functional flexibility. However, the CO2 emissions arising from the steel manufacturing process are affecting climate change in a negative way and so there is a growing global demand to reduce CO2 emissions in the steel industry.
Kobe Steel noted that Midrex plants produce more than 60 percent of global direct reduced iron and its MIDREX ® Process guarantees lower CO2 emission levels than blast furnaces as natural gas or gas derived from coal are used in the production process to reduce iron ore for use in steelmaking. According to the statement by the company, the process will play an important role in developing this initiative.
Kobe Steel aims to contribute to the reduction of CO2 emissions in global steel production in collaboration with these companies.