Vale and Green Energy Park (GEP) are working together on a project which has been selected by the European Commission and the 27 Member States as one of the flagship projects of the European Union’s Global Gateway Program in the Climate and Energy category. According to reports, the project is focused on enabling the construction of the green hydrogen unit, supplying the future development of a Mega Hub in Brazil. It is also a part of the “Brazil North-East Green Energy Parks and Green Shipping Corridors” initiative.
The Global Gateway is aimed at committing up to £300 billion in global investments between 2021 and 2027. The project focuses on the digital, climate and energy, transport, health, education, and research sectors, aiming to strengthen strategic partnerships and promote the integration of EU value chains.
“By including the Vale-GEP project in its list of priorities, the European Union recognizes the importance of this initiative for the development of the green hydrogen chain and the decarbonization of the global steel industry,” said Rogério Nogueira, Vale’s Executive Vice President for Commercial and Development.
“We have gained another boost to attract other partners to support us in making this project viable, which we consider fundamental for Brazil’s low-carbon economy,” he added.
“The European Global Gateway strategy and its flagship projects drive high-quality infrastructure investments that strengthen global connectivity while aligning with EU priorities. It also creates valuable opportunities for Lithuanian and other European businesses to contribute to sustainable development as well as resilient and trusted supply chains across the globe,” said Kęstutis Budrys, minister of Foreign Affairs of the Republic of Lithuania.
The project marks a significant milestone in strengthening collaboration between Europe and Brazil, driving forward the energy transition. The President of the European Commission, Ursula von der Leyen has also endorsed the initiative alongside Marian Schuegraf, the ambassador to the Delegation of the European Union in Brazil providing Political support.
Explaining the same he said, “European and Brazilian businesses such as Green Energy Park and Vale lead the development of decarbonization solutions in Brazil. Supporting such initiatives, connecting and strengthening value chains on both sides of the Atlantic and to mutual benefit, is a priority for the EU under the Global Gateway Investment Agenda.”
Bart Biebuyck, CEO of Green Energy Park, calls it the perfect example of an initiative that fully meets the objectives of the Global Gateway: “The Global Gateway is a tool that helps finance the kind of cooperation where there is a win-win situation for Europe and partner countries like Brazil. And this is exactly the case with our project”.
In October 2024, Vale and GEP announced a partnership to conduct feasibility studies for the installation of a green hydrogen production unit in Brazil. The unit is intended to supply a future Mega Hub, an industrial complex aimed at manufacturing low-carbon steel products in the country.
The Vale-GEP project has already been included in the Brazil Platform for Climate Investments and Ecological Transformation (BIP), an initiative launched by the Brazilian government and its partners last year, seeking to promote investments in ecological transformation to decarbonize the economy.
Vale is actively seeking partners to support the construction of Mega Hubs in Brazil. These industrial complexes will utilize iron ore agglomerates (pellets or briquettes) supplied by Vale as raw material for the production of hot-briquetted iron (HBI), an intermediate product between iron ore and steel.
This initiative aligns with global efforts to advance sustainable industrial practices and reduce carbon emissions in the steel production process.
Brazil’s “North-East Green energy Parks and Green Shipping Corridors” initiative is representing many projects in partnership with Vale and is also seen as a unique example for the great economic potential of integrating the hydrogen value chain in Atlantic. The project capitalizes on Brazil’s natural competitive advantages in renewable hydrogen production, combined with Vale’s high-quality iron ore supply in the country. The initiative aims to produce green hot-briquetted iron (HBI) in Brazil, which will be exported to European markets to support the production of green steel.
The green HBI will be transported to Europe via decarbonized shipping corridors, with deliveries planned to various ports across the continent. This effort aligns with global goals to reduce carbon emissions in the steel industry and promote sustainable industrial practices.
Source: Vale press release