Blastr Green Steel & Cargill sign MOU for Supply of Green Steel

Cargill's metals business and Blastr Green Steel, a developer of decarbonized steel supply, have agreed to work together to supply steel made without use of fossil fuels in the Nordic region to meet growing global demand for green steel. Both companies share an ambition to drive significant reductions of carbon emissions in the steel industry. Under the Memorandum of Understanding, Blaster and Cargill Metals plan to combine the skills of both companies to accelerate the development of projects that enable significant carbon savings to the global steel industry. Cargill Metals brings expertise in raw materials sourcing and Cargill's global capabilities in ocean transportation and logistics, as well as development of green products for market, risk management and financing facilities. Blastr contributes its industrial decarbonization expertise, entrepreneurial business skills, track record and access to capital within green energy and CO2 abatement. Blastr also brings regional knowledge of sites, opportunities and local support. Cargill's ambition is to develop world leading projects in the green steel supply chain through the expedient development of initial production and then incrementally expand capacity based on market demand. Separately, independent market analysis suggests a market shortfall in supply, with global demand for low carbon steel likely to increase from below 5 million tonne in 2021 to 200 million tonne in 2030, with European demand increasing to nearly 40mt by that date, driven by automotive and construction sectors1. The next phase of the cooperation will focus on final technology selection, access to green power, location and the final mix of products. Teams from Blastr and Cargill Metals will collaborate on sustainable supply chains, speed to market, technology risks and constraints, and on raising capital to finance the project development. Blastr aims to decarbonize the steel industry, by creating an integrated green steel producer leveraging Nordic advantages. By utilizing local raw materials and fossil free energy and applying circular economy thinking throughout the value chain, we aim to cut the CO2 emissions of our end products by 95%. We will establish production facilities in the Nordic Region, with its ambitious political energy transition agenda, deep ice-free ports giving access to the attractive European markets, and highly qualified workforce. The Blastr green steel project is expected to be one of the largest industry start-ups in the Nordic region. Blastr is founded and backed by Vanir Green Industries, a Nordic investment company that invests in, develops and scales green, robust and profitable businesses needed to accelerate the energy transition. VGI is established by Tore Ivar Slettemoen, one of the founders of Freyr Batteries and managed by a team of experienced professionals with deep industrial competence and a genuine drive to build a more sustainable future. Headquartered in Singapore, Cargill's metals business provides value-add services and solutions along the global ferrous supply chain. Combining over 150 years track record of risk management in global commodities markets with more than 40 years unique insights in the ferrous industry, we provide our customers the support they need to thrive. It connects iron ore miners around the world with steel mills in key markets and provide a broad range of services from technical marketing to customized risk management solutions along the supply chain including to end users of steel.