The region accounts for around 40 % of global DRI production and some governments have already supported large-scale, hydrogenready low carbon steel complexes within special economic zones.
These conditions across Europe and the Middle East could set up the regions for a split supply chain where low carbon feedstock is produced in Middle Eastern hubs, then shipped to Europe and used to produce low carbon steel. This corridor supports industrial transformation and helps both regions to achieve their goals.
Vale has already signed a Memorandum of Understanding with European steelmakers to explore the long-term supply of low carbon hot briquetted iron. This agreement aims to evaluate the construction of plants to produce DRI and other low carbon products.
Catriona Bell, Director, Transition Finance at Standard Chartered, says:“ Institutions with established franchises across the Middle East and Europe, like Standard Chartered, are well placed to provide the necessary connective tissue to facilitate a cross-regional value chain for low carbon steel. Our global network across high-growth markets and experience in aligning international capital with transition assets make us a natural intermediary to support a Middle East to Europe low carbon steel corridor.” sustainabilitymag. com
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