Vale Oman to switch to renewables by 2030
Published: 01:05 PM,May 01,2024 | EDITED : 05:05 PM,May 01,2024
Low carbon briquettes developed by Vale.
MUSCAT: Vale Oman, a 100% subsidiary of Brazilian mining giant Vale, says it plans to use renewable energy to power its iron ore pelletising and associated operations at the Port of Sohar by 2030.
The mining conglomerate currently operates a pair of iron ore pelletising plants with a total capacity of 9 million tonnes per year (Mtpy) at Sohar Port and Freezone. This complex is integrated with a 40 Mtpy capacity distribution centre which supplies DRI pellets as feedstock to steel mills in the Middle East, among other markets.
According to Nasser Suleiman al Azri, CEO – Vale Oman, the proposed switch to renewables is in line with the parent company’s longer term sustainability strategy.
“Our goal is driven by our global strategy which we refer to as Vale100,” said Al Azri. “This strategy identifies strengthening our foothold in Oman and the region as our primary focus. As mentioned previously, sustainability is always at the top of our agenda and we plan to use 100% renewable electricity by 2030. We will also reduce 33% of our scope one and scope two by 2030. Long term, we have our 2050 targets of carbon neutrality.”
Al Azri made the comments in an interview featured in The Business Year (TBY), a leading UK-based international business platform. In the interview, the Omani CEO – who made corporate history of sorts about a year ago when he was became the youngest national – at 34 - to helm a wholly foreign-owned corporation – also shared Vale’s vision for establishing a low-carbon Mega Hub at Duqm SEZ.
First unveiled in November 2022, the proposed Mega Hub will help support Vale’s planned pivot away from carbon-intensive iron-ore pelletising to relatively lower carbon briquetting to meet the feedstock requirements of steel mills around the world. Dubbed ‘the road to green steel’, the Mega Hub will enable Vale to achieve its eventual goal to produce green steel and fulfil its global net zero commitments, he noted.
“The steel industry is one of the heaviest emitting industries worldwide and steel makers must gradually move away from the traditional steel production that uses coal to a cleaner source like natural gas. However, even natural gas has emissions and as a result, the industry has turned to hydrogen as a viable solution,” Al Azri said.
According to the CEO, iron ore pelletising of the kind that is currently done at its Sohar complex requires temperatures of above 1,000 degrees Celsius. On the other hand, briquetting – a process developed and patented by Vale – can be done at 250 degrees Celsius, effectively helping slash emissions by over 70%.
Significantly, interest in the Duqm Mega Hub is growing from steelmakers eager to join Vale in the manufacture of briquettes for the production of green steel in the future.
“We invite clients to join us in our Mega Hub in Duqm, and they have been left impressed with the potential the country has. To date, Vale has signed nearly 50 MoUs with potential partners seeking a viable partner,” he said.
“We aim to see briquettes replacing the pelletizing process long term - an ambitious but realistic goal. Ultimately, we want to make Oman a globally recognized and respected steel hub. Although that is in the longer-term, everything we have achieved and are doing today is contributing towards this objective,” the CEO added.
The mining conglomerate currently operates a pair of iron ore pelletising plants with a total capacity of 9 million tonnes per year (Mtpy) at Sohar Port and Freezone. This complex is integrated with a 40 Mtpy capacity distribution centre which supplies DRI pellets as feedstock to steel mills in the Middle East, among other markets.
According to Nasser Suleiman al Azri, CEO – Vale Oman, the proposed switch to renewables is in line with the parent company’s longer term sustainability strategy.
“Our goal is driven by our global strategy which we refer to as Vale100,” said Al Azri. “This strategy identifies strengthening our foothold in Oman and the region as our primary focus. As mentioned previously, sustainability is always at the top of our agenda and we plan to use 100% renewable electricity by 2030. We will also reduce 33% of our scope one and scope two by 2030. Long term, we have our 2050 targets of carbon neutrality.”
Al Azri made the comments in an interview featured in The Business Year (TBY), a leading UK-based international business platform. In the interview, the Omani CEO – who made corporate history of sorts about a year ago when he was became the youngest national – at 34 - to helm a wholly foreign-owned corporation – also shared Vale’s vision for establishing a low-carbon Mega Hub at Duqm SEZ.
First unveiled in November 2022, the proposed Mega Hub will help support Vale’s planned pivot away from carbon-intensive iron-ore pelletising to relatively lower carbon briquetting to meet the feedstock requirements of steel mills around the world. Dubbed ‘the road to green steel’, the Mega Hub will enable Vale to achieve its eventual goal to produce green steel and fulfil its global net zero commitments, he noted.
“The steel industry is one of the heaviest emitting industries worldwide and steel makers must gradually move away from the traditional steel production that uses coal to a cleaner source like natural gas. However, even natural gas has emissions and as a result, the industry has turned to hydrogen as a viable solution,” Al Azri said.
According to the CEO, iron ore pelletising of the kind that is currently done at its Sohar complex requires temperatures of above 1,000 degrees Celsius. On the other hand, briquetting – a process developed and patented by Vale – can be done at 250 degrees Celsius, effectively helping slash emissions by over 70%.
Significantly, interest in the Duqm Mega Hub is growing from steelmakers eager to join Vale in the manufacture of briquettes for the production of green steel in the future.
“We invite clients to join us in our Mega Hub in Duqm, and they have been left impressed with the potential the country has. To date, Vale has signed nearly 50 MoUs with potential partners seeking a viable partner,” he said.
“We aim to see briquettes replacing the pelletizing process long term - an ambitious but realistic goal. Ultimately, we want to make Oman a globally recognized and respected steel hub. Although that is in the longer-term, everything we have achieved and are doing today is contributing towards this objective,” the CEO added.