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Gerdau and Petrobras join forces to lead sustainable innovations in low-carbon technologies

Written by Corporate
Published 10/09/2024 às 09:25
sustainable business, low carbon economy, decarbonization
Gerdau and Petrobras sign partnership to advance low-carbon technologies and businesses'. – PHOTO: ©2024|tatiane.nelli@fsb.com.br

Gerdau and Petrobras sign Memorandum of Understanding to explore commercial opportunities and develop sustainable businesses focused on the decarbonization of steel.

Gerdau and Petrobras have signed a Memorandum of Understanding (MoU) dedicated to investigating commercial opportunities and fostering partnerships focused on low-carbon businesses. This collaboration aims to join efforts in favor of decarbonization, enhancing strategies that reduce emissions in operations both companies.

The main focus will be on Research and Development, which is essential for creating innovative solutions that contribute to a low-carbon economy. In addition, this strategic alliance is aligned with the commitment to develop and promote sustainable businesses, ensuring innovation and environmental responsibility in the sector. The partnership reinforces the companies' commitment to overcoming global climate challenges.

Partnership for Low Carbon Fuels

The collaboration between Petrobras and Gerdau includes the analysis of sustainable business models, focusing on low-carbon fuels, hydrogen and its derivatives, as well as CO2 capture, transportation and storage (CCS). In addition, R&D (Research and Development) projects will be conducted focused on the integrity of materials in maritime environments and the production of steel through the 'direct reduction' process using natural gas instead of coal. This process represents a sustainable alternative to conventional steel production, using natural gas instead of coal.

Sustainable Alternative for Steel Production

Gerdau, the largest steel producer in Brazil and the leader in recycling metal scrap in Latin America, stands out for having one of the lowest greenhouse gas emissions in the global steel industry. This is due to its sustainable production matrix, which uses scrap recycling and the use of bioreducers (charcoal). According to Flávia Souza, Gerdau's global director of Energy and Supplies, the company remains firm in its commitment to further reduce its emissions intensity of Greenhouse Gases (GHG), which is currently 0,91 t CO₂e per tonne of steel (Scopes 1 and 2), aiming to reach 0,82 t CO₂e per tonne of steel by 2031.

Commitment to a Sustainable Future

With 123 years of history, Gerdau is committed to being an essential part of solutions for environmental challenges that society faces, acting collaboratively to build a more sustainable future for the entire planet. Partnerships like this one between Petrobras and Gerdau are crucial for the development of technologies and initiatives that promote a low-carbon economy, creating commercial opportunities and advancing the decarbonization of the steel industry. Flávia Souza highlights that these collaborations are fundamental to facing environmental challenges, offering innovative and sustainable solutions.

Exploring Sustainable Solutions

In a strategic move to face the environmental challenges of the 21st century, Petrobras and Gerdau announced the signing of an Memorandum of Understanding to explore and develop sustainable solutions within the scope of low-carbon businesses. Maurício Tolmasquim, Director of Energy Transition and Sustainability at Petrobras, highlights that this alliance aims to drive decarbonization through the exploration of innovative and sustainable technologies, establishing new direct reduction processes and reducing the emissions intensity of steel production. Partnerships of this kind are essential to enhance decarbonization efforts, address environmental challenges and ensure that companies are at the forefront of building a low-carbon economy. The commercial opportunities created by these initiatives highlight the importance of an ongoing commitment to sustainability and the pursuit of potential partnerships that can contribute to a greener future.

Sustainable Technologies and Initiatives

Through these initiatives, both Gerdau and Petrobras seek to develop technologies that can be adopted on a large scale, promoting a significant reduction in greenhouse gas emissions. Adopting a low-carbon economy is essential to mitigate the impacts of climate change and create a sustainable future for all. Ultimately, collaboration on sustainable business projects and innovative production processes, such as direct reduction, are decisive steps to address environmental challenges and lead the steel industry towards effective and lasting decarbonization.

Source: © tatiane.nelli@fsb.com.br

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