The hub, which would be built at the Port of Acu in the state of Rio de Janeiro, would consume shipped-in Vale pellets, but could in the future include an iron ore briquetting plant. The companies have agreed to seek investors and clients. 

"We believe that Brazil has a lot of potential to be a low-carbon steelmaking hub. We have high-quality iron ore, abundant natural gas reserves and the potential to develop green hydrogen. As a Brazilian company, Vale is seeking to partner with other entities that can add value to this process," said Marcello Spinelli, Vale vice president of iron ore solutions.

"We want to foster ‘neo-industrialization’ in Brazil, a green-based industrialization,” he added. 

If built, the plant would consume natural gas, but eventually could be converted to operate on green hydrogen.