A partnership between Vale and Green Energy Park (GEP) in Brazil has been recognized as a Global Gateway flagship project by the European Union, marking a significant milestone in international cooperation for the energy transition. The initiative aims to develop a green hydrogen plant to supply a Mega Hub in Brazil, facilitating the production of low-carbon steel.
Strengthening the Green Hydrogen Value Chain
The Vale-GEP project has been selected under the Climate and Energy category of the EU Global Gateway program, an initiative designed to invest €300 billion globally between 2021 and 2027 in strategic sectors, including climate, energy, transport, and digital infrastructure. The Mega Hub project is part of the broader “Brazil North-East Green Energy Parks and Green Shipping Corridors” initiative, which integrates the hydrogen value chain between Brazil and Europe.
According to Rogério Nogueira, Executive Vice President for Commercial and Development at Vale, this recognition reinforces the project’s role in decarbonizing the steel industry:
“By including the Vale-GEP project in its list of priorities, the European Union acknowledges the importance of this initiative in advancing the green hydrogen sector and supporting global steel industry decarbonization. This further strengthens our ability to attract partners and drive Brazil’s low-carbon economy forward.”
EU Endorsement and Strategic Impact
The project, proposed by Lithuania, has gained significant political backing within the European Commission. Marian Schuegraf, EU Ambassador to Brazil, highlighted the initiative’s role in strengthening transatlantic cooperation:
“European and Brazilian companies such as Green Energy Park and Vale are at the forefront of decarbonization efforts in Brazil. Supporting such initiatives and reinforcing value chains on both sides of the Atlantic are key priorities under the Global Gateway Investment Agenda.”
Bart Biebuyck, CEO of Green Energy Park, emphasized the mutual benefits of the initiative:
“The Global Gateway facilitates cooperation that creates a win-win situation for both Europe and partner countries like Brazil. Our project is a prime example of this strategy in action.”
Scaling Up Green Hydrogen for Global Markets
First announced in October 2024, the Vale-GEP partnership is currently conducting feasibility studies for a green hydrogen production unit in Brazil. The plant will supply the upcoming Mega Hub, an industrial complex dedicated to producing green steel, using Vale’s iron ore agglomerates to manufacture hot-briquetted iron (HBI). This green HBI will be exported to European markets via decarbonized shipping corridors.
The project was also included in the Brazil Platform for Climate Investments and Ecological Transformation (BIP), an initiative launched by the Brazilian government to drive low-carbon industrial development.
With strong backing from both Brazil and Europe, this partnership stands as a landmark initiative in the global hydrogen economy, reinforcing Brazil’s position as a key player in green energy production.
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