AXIA and GIZ form a partnership to produce green steel with hydrogen.

AXIA Energia and GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit) have formalized a strategic partnership for the development of the first low-carbon steel production plant using green hydrogen in Brazil. This initiative is part of the Brazil-Germany Cooperation for Sustainable Development.

The project envisions the construction of a green hydrogen plant with a capacity of up to 10 MW, which will supply a partner steel mill. The goal is to significantly reduce CO₂ emissions associated with conventional steel production and demonstrate the economic viability of the model on a commercial scale.

The partnership is part of the develoPPP program, funded by the BMZ (German Federal Ministry for Economic Cooperation and Development), and seeks to accelerate the transition of the Brazilian steel industry to more sustainable processes, as well as position the country as a global benchmark in low-carbon steel.

In addition to the plant's implementation, the project includes professional training initiatives, strengthening the sector's infrastructure, and discussing methodologies for low-emission steel certification, a step considered fundamental for the product's insertion into more demanding international markets.

According to Juliano Dantas, Vice President of Innovation, R&D, Digital and IT at AXIA Energia, the initiative reinforces the company's strategy of working towards the decarbonization of carbon-intensive production chains.

“AXIA Energia’s purpose is to offer sustainable solutions that drive the decarbonization of different production chains and reinforce its leading role in the energy transition. The partnership with GIZ for the production of low-carbon steel represents another strategic advance for the company in building new businesses and partnerships guided by socio-environmental responsibility, contributing to making the industry cleaner, more competitive and sustainable,” he states.

The national director of GIZ Brazil, Jochen Quinten, believes that the project marks a new stage in cooperation between Brazil and Germany in the energy sector. After more than 15 years of collaboration in renewable energies, the partnership is now advancing into an industry considered strategic and difficult to decarbonize. According to him, the benefits of the initiative tend to be shared between Brazil, Germany, and the European Union.

“With AXIA, we are now taking a decisive step by bringing this accumulated knowledge and experience to a key industry like steelmaking. Steel defossilization is a common challenge for Brazil, Germany, and the European Union, and the benefits of this cooperation will be equally shared,” says Quinten.

The challenge of defossilizing the steel industry.

The steel industry is one of the most complex sectors in the global decarbonization process. Data from IRENA (International Renewable Energy Agency) indicate that the steel industry accounts for approximately 7% of global carbon dioxide (CO₂) emissions.

In Brazil, despite the high share of renewable sources in the electricity mix, steel production still depends heavily on fossil fuels.

This dependence exposes the sector to increasing risks, such as carbon taxation, trade barriers, and environmental requirements in international markets, especially in Europe.

The process of producing steel with green hydrogen begins with the generation of renewable electricity, from sources such as solar, wind or hydroelectric power, used in electrolysis plants to separate the water molecule into hydrogen and oxygen.

In the next stage, hydrogen replaces all or part of fossil fuels, such as coal coke or natural gas, in blast furnaces or auxiliary systems, resulting in steel with a smaller carbon footprint.

all the content of Canal Solar is protected by copyright law, and partial or total reproduction of this site in any medium is expressly prohibited. If you are interested in collaborating or reusing part of our material, please contact us by email: redacao@canalsolar.com.br.