Key Takeaways:
- Blastr Green Steel AS (“Blastr”), a developer of ultra-low CO2 steel products, and Cargill, a major player in the global ferrous supply chain, have signed a strategic framework agreement to advance the Blastr Green Steel Project and achieve radical decarbonization in steel production.
- The agreement encompasses various aspects of Blastr’s integrated value chain, including iron ore supply, offtake and sales, logistics, financial services, and a $10 million equity commitment from Cargill in Blastr’s planned Series A financing round.
- The collaboration builds on the existing relationship between Cargill and Blastr and aims to realize Blastr’s vision of an integrated green steel value chain, capable of reducing CO2 emissions by more than 90% per tonne of steel.
- Blastr is initially developing a 6 million ton DR-grade pellets plant and a 2.5 million ton direct reduced iron (DRI-EAF) steel plant, incorporating green hydrogen production.
- The partnership covers multiple areas, including iron ore supply, offtake and selling of DR pellets, Hot Briquetted Iron (HBI), ultra-low CO2 steel products, scrap sourcing, green shipping, logistics, working capital, and risk management services.
- Cargill’s involvement includes a convertible loan agreement of $3 million and support in developing and commercializing ultra-low CO2 steel products for the European market.
- The definitive agreements will be finalized in the coming months, with the goal of bringing ultra-low CO2 steel to global customers.
Partnership for Decarbonization of Steel Production
Blastr Green Steel, a leading developer of ultra-low CO2 steel products, and Cargill, a significant player in the global ferrous supply chain, have signed a strategic framework agreement to accelerate the radical decarbonization of the steel value chain. The partnership reflects a strong commitment to realizing the Blastr Green Steel Project, which aims to achieve more than a 90% reduction in CO2 emissions per tonne of steel.
Collaboration Across the Value Chain
The agreement encompasses various aspects of Blastr’s integrated value chain, including the supply of iron ore, offtake and sales of Direct Reduction (DR) pellets, Hot Briquetted Iron (HBI), and ultra-low CO2 steel products, as well as scrap sourcing, green shipping, logistics, working capital, and risk management services. Cargill’s involvement includes a $10 million equity commitment in Blastr’s planned Series A financing round, along with a convertible loan agreement of $3 million.
Vision for Green Steel Production
Blastr Green Steel’s CEO, Hans Fredrik Wittusen, emphasizes the shared ambition of realizing the vision for green steel production and significantly reducing CO2 emissions along the steel value chain. The collaboration with Cargill, leveraging their access to raw materials, end-customers, and innovative solutions, is seen as a significant leap forward in achieving large-scale green steel production with a low CO2 footprint.
Advancing Sustainable Ferrous Supply Chains
Cargill’s Managing Director of Metals, Lee Kirk, expresses their commitment to developing new process routes and accelerating the transition to a steel industry with lower CO2 emissions and strong Environmental, Social, and Governance (ESG) credentials. The partnership aims to create transparent certified supply chains, facilitate strategic flows to steel end customers in the growing green steel segment, and contribute to a responsible and sustainable ferrous supply chain.
Path Forward and Definitive Agreements
Over the next few months, Cargill and Blastr will finalize definitive agreements, covering the various areas included in the strategic collaboration. The partners will continue to work closely together to realize their shared ambition of delivering ultra-low CO2 steel products to global customers.
About Blastr Green Steel:
Blastr aims to decarbonize the steel industry by leveraging Nordic advantages and applying a circular economy approach throughout the value chain. Their goal is to produce 2.5 million tonnes of cost-competitive, ultra-low CO2 steel with approximately 90% lower scope 1-3 emissions compared to conventional steel production. Blastr plans to establish production facilities in the Nordic Region, benefiting from its ambitious energy transition agenda, strategic access to European markets through deep ice-free ports, and highly qualified workforce.
About Cargill:
Cargill is a global company that connects farmers with markets, customers with ingredients, and families with essential products. With a focus on safe, responsible, and sustainable practices, Cargill’s 160,000 team members innovate to nourish the world. Cargill’s metals business provides value-added services and solutions along the global ferrous supply chain. The company operates across over 25 ports and more than 50 warehouses globally, providing physical and financial solutions to customers in over 40 countries.
About Cargill Metals:
Cargill Metals, headquartered in Singapore, offers value-add services and solutions along the global ferrous supply chain. With over 40 years of unique insights in the ferrous industry and a track record of risk management in global commodities markets, Cargill provides support to customers along the supply chain, from iron ore miners to steel mills and end users. The company operates globally, moving around 50 million tons of physical iron ore and 6 million tons of physical steel each year.
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