Valehas acquired Tecnored a Brazil-based low-emissions pig iron technology company to help its customers achieve reduction in their CO2 emissions.
Tecnored uses biomass to produced pig iron without a traditional blast furnace, since this fuel reduces CO2 emission in a 1:1 ratio. A 100pc biomass fueled production would allow for making zero-emission pig iron.
Vale indicated that this acquisition is critical to the company’s strategy of finding clean sources to produce iron units. Providing substitute units without CO2 emissions is a critical play in Vale’s future within the metal and mining industry and helping its customers achieve smaller carbon footprints especially as China’s consumption and production of scrap increases.
The Asian country is on its way to becoming a net exporter and much like the US did in the past, China will look to other countries to take the less desirable material for melting leaving a gap in the scrap quality against substitute products such as Vale’s hot briquette iron and pig iron.