Under the agreement, Rio Tinto will ship ore from its Iron Ore Company of Canada operation to the startup, GravitHy, which aims to annually produce 2 million metric tons of direct reduced iron at its proposed facility in Fos-sur-Mer.

The GravitHy facility will have deep seaport access and will feature hydrogen production infrastructure, powered by existing grid-connected nuclear power. 

“This collaboration is aligned with Rio Tinto’s steel decarbonization strategy to accelerate the development of low-carbon electric arc furnace steelmaking with high-grade iron as feedstock,” said Simon Farry, Rio Tinto’s head of steel decarbonization.

“This will allow us to both reduce our Scope 3 emissions and create valuable decarbonized pathways for our high-grade iron ore. We are excited to support GravitHy’s project and expand our understanding of the emerging green iron and steel market.”

Jose Noldin, president of GravitHy, said about 8% of the world's carbon emissions are from ironmaking and steelmaking. To the fix the problem, the industry must turn to new technologies, redesign processes and build new infrastructures. 

“We see low-carbon steel as an essential component of the energy transition towards carbon neutrality,” Noldin said. “I am convinced that this partnership with Rio Tinto represents a major step towards a greener and more sustainable steel industry.”