Mining company Anglo American and Swedish startup H2 Green Steel have signed a memorandum of understanding to trial the use of iron ore products from the Kumba mines in South Africa and Minas-Rio in Brazil as feedstock for the latter firm’s hydrogen-based Boden green steel plant.

“Our purpose is to decarbonise hard-to-abate sectors, and this is only possible with strong partnerships along the value chain with a true commitment to reducing scope one, two and three emissions,” says Luisa Orre, H2 Green Steel’s chief procurement officer.

Anglo American’s scope one and two emissions totalled 13.3mn t of CO₂e in 2022, according to its latest sustainability report. The mining firm targets carbon neutrality for scope one and two emissions and a 50pc reduction in scope three emissions by 2040.

2.5mn t/yr – Initial production capacity of Boden plant

“We are impressed by Anglo American’s efforts to bring high-quality iron ore products to customers which focus on low-carbon iron and steelmaking, and we look forward to continue working with them, not only for our first green hydrogen integrated steel plant in Sweden but for other future locations globally,” she adds.

The Swedish firm is exploring the development of a Brazilian green steel plant from the latter half of this decade.

H2 Green Steel plans to begin operations at its Boden plant from 2025, with initial production of 2.5mn t/yr.

The company last month signed a framework agreement with Finland’s Fortum, with plans to sign two power-purchase agreements (PPAs) for its 700–800MW electrolyser at the Boden plant. The first will be an index-based PPA of 1.3TWh/yr from 2026 with a five-year hedging horizon, and the second a fixed-price PPA of 1TWh/yr for up to nine years from 2027.

Mining

Anglo American produced 59.3mn t of iron ore in 2022 and estimates it will produce 57–61mn t this year. The firm also saw a 6pc decrease in platinum group metals (PGM) production, which it accounts for as a result of lower grades produced at Mogalakwena and planned infrastructure closures at Amandelbult. PGMs are used in the manufacture of proton-exchange membrane electrolysers but are also extremely rare—with concern that current rates of production could constrain future electrolyser supply without significant recycling.

The mining giant launched a prototype hydrogen-powered mine haul truck last year, designed to operate at Mogalakwena. It also participated in a 2021 feasibility study assessing the development of hydrogen valleys in South Africa.

---

Author: Polly Martin