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.
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.
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.
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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.
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.
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