RE:RE:RE:1.5 billion Vale bond offeringHere's some info on work Vale is doing to combat climate change that is related to Pelletization. Keep in mind the RISE results and interest in Pyro torches for Pelletization furnaces only began this year so none of these documents will reflect this.
I can't find an exact number but I believe Pelletization operations make up ~3.5M - 4.5M MT CO2 from Vale's operations out of 11.5M MT CO2 total Scope 1 emissions (direct emissions from owned or controlled sources).
https://www.vale.com/esg/en/Pages/ClimateChange.aspx
The 33% absolute emissions reduction target by 2030, with 2017 as a baseline, is aligned with the Science Based Target Initiative (SBTI) methodology, as well as the Paris Agreement.
Vale has advanced in two key points:
-Development of a roadmap for use in economic feasibility studies for projects (NPV) and adopting an internal carbon price (shadow price) of US$ 50 per ton of CO2 equivalent;
-Adoption of an internal carbon price (shadow price) of US$ 10 per ton of CO2 equivalent, for carbon sequestration in forest restoration and reforestation projects;
To help in this commitment, a marginal abatement cost is under development through a roadmap that starts with renewables, energy efficiency, biofuels, and end up with electrification and breakthrough technology, using an internal carbon pricing. (this may be jumping forward due to earlier than anticipated availability of breakthrough technology) https://www.vale.com/esg/en/Documents/vale_cdp_questionaire.pdf p.76-77
C-MM9.6
(C-MM9.6) Disclose your organization’s low-carbon investments for metals and
mining production activities.
Investment start date
January 1, 2016
Investment end date
December 31, 2019
Investment area
R&D
Technology area
Other, please specify
Energy efficiency, gasification & forest)
Investment maturity
Applied research and development
Investment figure
2,300,000
Low-carbon investment percentage
0 - 20%
Please explain:
The Research Support Foundation of Espirito Santo (Fundacao de Amparo a Pesquisa
e Inovacao do Espirito Santo - Fapes), the Carlos Chagas Filho Research Support
Foundation of the State of Rio de Janeiro (Fundacao Carlos Chagas Filho de Amparo a
Pesquisa do Estado do Rio de Janeiro - Faperj), and Vale signed a Cooperation
Agreement to develop and support scientific and technological research projects. In
2016, 44 research and development (R&D) projects were approved, which represent a
financial contribution of approximately US$ 4.6 million. There are BRL 16 million (USD
4.6 M) available to be invested in new projects: BRL8 million from Vale (USD 2.3 M),
BRL 4 million (USD 1.15 M) from FAPERJ and BRL 4 million (USD 1.15 M) from
Esprito Santo).
Among the projects approved, 11 are related to Logistics, six to Pelletizing, and 27 to
the Environment, of which three are related to the subject of climate change and energy:
of energy efficiency in pelletizing ovens, biomass gasification and the impact of climate
change on Brazilian forest species stand out. The approved projects aim to contribute to
the advancement and application of scientific and technological knowledge.
Investment start date
January 1, 2018
Investment end date
January 1, 2027
Investment area
R&D
Technology area
Other, please specify
Process optimization
Investment maturity
Basic academic/theoretical research
Investment figure
9,000,000
Low-carbon investment percentage
81 - 100%
Please explain:
Vale is consistently focused on improving its processes throughout research and
development (R&D) projects. In 2018, Vale invested in various R&D emission reduction
projects, that are in different stages of maturity, including energy efficiency in pelletizing
ovens, change of fuels and improving pelletizing quality projects.
sjc444 wrote: I checked Vale's latest quarterly report and conference call to see if they gave any indication about changing their iron pellet process. Unfortunately there was no discussion of environmental issues. Other than the finacial numbers the only other topic was how thecompany was coping with Covid 19.