TOKYO (Reuters) - Japanese steelmaker Kobe Steel said on Monday it has reached a non-binding agreement with Brazilian miner Vale SA and Japanese trading company Mitsui & Co to collaborate in offering low-CO2 iron making solutions to the steel industry.
Cutting carbon emissions from steelmaking is an important part of efforts to tackle climate change.
Kobe Steel will work with its U.S. unit, Midrex Technologies Inc, whose direct reduction ironmaking technology uses natural gas to reduce iron ore for use in steelmaking, offering lower CO2 emissions than those produced using blast furnaces, it said in a statement.
Direct Reduction Iron (DRI) is a raw material for steelmaking made by reducing iron ore and is mainly used in electric arc furnaces as a supplement or substitute for high quality scrap and pig iron.
