Global mining company Anglo American and German steel product manufacturer Salzgitter Flachstahl have announced today a new partnership aimed at advancing green steelmaking, through collaboration on carbon emissions reduction in the industry.

Steelmaking is one of the biggest emitters of CO2 globally, with total greenhouse gas emissions (GHG) from the sector accounting for between 7% and 9% of direct emissions from the global use of fossil fuels. Given steel’s heavy dependence on coal, it is also one of the most challenging sectors to decarbonize. While several initiatives have emerged recently to help address the impact of steel, most commercially viable alternatives are still at an early stage.

The Anglo American/Salzgitter collaboration will focus on research into feed materials, including iron ore pellets and lump iron ores, suitable for use in direct reduction (DR) steelmaking. DR steelmaking depends on high-quality iron ore feedstock and is a significantly less carbon-intensive production method than the conventionally used blast furnace process. The partners may also explore the development of hydrogen technologies.

Peter Whitcutt, CEO of Anglo American’s Marketing business, said:

“While steel is a critical building block of our modern lives, and itself a critically needed material for the energy transition, the steel industry is a significant producer of carbon dioxide. That’s why we are committed to collaborating with industry-leading players like Salzgitter Flachstahl to develop strategies that capitalise on the premium quality properties of our products to help drive emissions reduction across the entire steelmaking sector.”