Rio Tinto and GravitHy: A New Dawn for Low-Carbon Steel in Europe

As the world grapples with the urgent need to reduce greenhouse gas emissions, the steel industry finds itself under the spotlight. Responsible for around 8% of global CO2 emissions, the sector is ripe for disruption. Enter Rio Tinto and GravitHy, two industry heavyweights joining forces to accelerate the decarbonisation of steelmaking in Europe.

Rio Tinto, a global mining giant, has signed definitive agreements with GravitHy, an early-stage industrial company, to support GravitHy's steel decarbonisation project in France. The collaboration sees Rio Tinto supplying high-grade direct reduction iron ore pellets from its Iron Ore Company of Canada (IOC) operations and managing the sales and marketing of ultra-low carbon Hot Briquetted Iron (HBI) produced by GravitHy.

GravitHy's proposed two million tonnes per year iron production facility at Fos-sur-Mer, France, is set to be commissioned in 2028. The facility, located next to a deep seaport, will feature ultra-low carbon hydrogen production infrastructure, powered by existing grid-connected nuclear power, to process direct reduction pellets into HBI. This process has the potential to reduce ironmaking-related CO2 emissions by more than 90%.

Steel produced with low-carbon emissions is an essential component of the net-zero energy transition. The production of iron and steel contributes around 8% of global carbon emissions and requires new technologies, redesigned processes, and new infrastructure to decarbonise. The collaboration between Rio Tinto and GravitHy is a significant step towards achieving this goal.

GravitHy Chief Executive Officer José Noldin expressed his enthusiasm for the partnership: "By combining our business ambitions, agility, and technological capabilities with Rio Tinto's global leadership in mining and steel decarbonisation, we are ensuring a solid sourcing and go-to-market strategy to help accelerate the development of this project."

Rio Tinto Head of Steel Decarbonisation Simon Farry echoed this sentiment: "This collaboration is aligned with Rio Tinto's steel decarbonisation strategy to accelerate the development of low-carbon Electric Arc Furnace steelmaking with high-grade iron as feedstock. This will allow us to both reduce our Scope 3 emissions and create valuable decarbonised pathways for our high-grade iron ore."

As the European Union aims to reduce its greenhouse gas emissions by at least 55% by 2030, the demand for low-carbon steel is surging. The partnership between Rio Tinto and GravitHy is well-positioned to capitalise on this growing market, offering a sustainable solution for steel producers and consumers alike.

In conclusion, the collaboration between Rio Tinto and GravitHy is a game-changer for the European steel industry. By harnessing the power of ultra-low carbon hydrogen and high-grade iron ore, the partnership is poised to revolutionise steelmaking and accelerate the net-zero energy transition. As investors, we should keep a close eye on this exciting development and consider the potential opportunities it presents in the low-carbon steel market.