American firm Cargill announced Monday that its metals business signed a Memorandum of Understanding (MoU) with decarbonized steel developer Blastr Green Steel AS to jointly produce fossil fuel-free steel in the Nordic region to meet increasing demand for green steel.
“Solving the decarbonization challenge of the steel industry requires new and innovative partnerships,” Lee Kirk, managing director for Cargill Metals, said in a release. “We are thrilled to partner with Blastr and collaborate on bringing meaningful carbon reduction to this vital to abate sector. It brings us one step closer to our goal of shaping a responsible and sustainable ferrous supply chain that helps the world thrive.”
Cargill Metals will offer its resources in ocean transportation and logistics, risk management, financing facilities, and expertise in developing green products, while Blastr will contribute its experience in industrial decarbonization, entrepreneurship, and access to capital within CO2 abatement and green energy.
“Ensuring the long-term supply of raw materials at required quantity is crucial for providing green steel to the market with an absolute minimum of CO2 emissions through the entire value chain,” said Blastr’s CEO Dag Moxnes in a statement. “Cargill offers a unique combination of access to regional raw materials, expertise, network and logistics solutions, which brings us a long step closer to realizing our joint Nordic green steel project.”
The companies are making final decisions on technology, access to green power, location, and the final mix of products in the next phase of the cooperation.