ArcelorMittal, Petrobras Team Up To Explore Low-Carbon Economy Models in Brazil

ArcelorMittal, Petrobras Team Up To Explore Low-Carbon Economy Models in Brazil - Carbon Herald

Luxembourg-based steel giant ArcelorMittal (AMS: MT), through its subsidiary ArcelorMittal Brasil, and Brazilian oil and gas major Petrobras (BVMF: PETR4) will collaborate to explore various aspects of the low-carbon economy, including low-carbon fuels, hydrogen, renewable energy production, and carbon capture and storage (CCS).

Aligning with their strategies for diversification and decarbonization, the companies have signed a memorandum of understanding (MoU) aimed at identifying commercial opportunities and potential partnerships in Brazil.

The collaboration originates from a joint study focusing on the development of a CCS hub in Espírito Santo, Brazil, according to a statement by ArcelorMittal.

This initiative aims to evaluate business models conducive to the economic viability of CCS implementation, which involves capturing carbon dioxide (CO2) emissions and storing them underground to mitigate climate change effects.

In the envisioned hub, CO2 would be captured from various sources such as steel, thermoelectric, cement, and natural gas processing industries.

Relevant: Petrobras Has Injected Record-Breaking 10.6MT Of CO2

This captured CO2 would then be transported through a connected pipeline network for storage in geological reservoirs, thereby enhancing technical and economic feasibility.

Petrobras has already initiated efforts to identify suitable geological reservoirs for carbon storage and is exploring the integration of CCS infrastructure into its existing facilities in Espírito Santo.

Commenting on the MoU, Maurício Tolmasquim, Petrobras’ Director of Energy Transition and Sustainability, underscored the potential for collaboration in areas like renewable energy, hydrogen, and low-carbon fuels within the steel sector.

Jorge Oliveira, CEO of ArcelorMittal Flat Carbon Latin America, emphasized the importance of developing CO2 capture and utilization projects as part of a broader strategy toward carbon neutrality.

He highlighted the alignment of this initiative with ArcelorMittal’s global goal of achieving carbon neutrality by 2050, underscoring the imperative of transitioning to a more sustainable economy to address climate change challenges.

Read more: SINAI Technologies, ArcelorMittal & RMI Team Up To Decarbonize Steel

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