Anglo American and Salzgitter Flachstahl GmbH signed a Memorandum of Understanding (MOU) for research in optimization of iron ore for direct reduction in their effort to combat carbon emissions. The MOU also analyzes supply chains for the optimization of interim and final processes at new planned facilities to achieve the lowest environmental impact with procurement, processes, and logistics.
Anglo American is a major supplier of high-grade ores for Salzgitter’s steel production. The company is aiming for carbon neutrality status by 2040 and has forecasted 64.5-66.5mn mt of iron ore.
Salzgitter’s goal is to replace carbon-based blast furnaces from 2025 through 2045 with electric arc furnaces and direct reduction plants utilizing natural gas with hydrogen technology. The new processes, including only the use of renewable energy sources, are estimated to reduce carbon emissions by 95pc by 2045.