Blastr Green Steel AS, a prominent developer of ultra-low CO2 steel products, and Cargill, a leading player in the global ferrous supply chain, have recently signed a strategic framework agreement. This agreement reflects their strong joint commitment to realize the ambitious Blastr Green Steel Project, aimed at radically decarbonizing steel production.
The comprehensive agreement covers various aspects of Blastr’s integrated value chain, including iron ore supply, product offtake, sales, logistics, and financial services. Notably, Cargill has made a significant equity commitment of USD 10 mln in Blastr’s planned Series A financing round.
This strategic partnership builds upon the close relationship that has developed between Cargill and Blastr over the past year, centered around Blastr’s vision for an integrated green steel value chain. This innovative approach has the potential to achieve a remarkable reduction of over 90pct in Scope 1-3 CO2 emissions per ton of steel.
By leveraging this agreement, both companies aim to establish a unique and profitable business model with an unprecedentedly low CO2 footprint for large-scale steel production, providing a platform for further growth. Blastr is initially focusing on the development of a 6 mln-ton DR-grade pellets plant and a 2.5 mln-ton direct reduced iron (DRI-EAF) steel plant, with green hydrogen production capabilities.
The agreement encompasses various aspects, including iron ore supply to the Blastr Pellet Plant, offtake and sale of DR pellets, Hot Briquetted Iron (HBI), and ultra-low CO2 steel products, as well as scrap sourcing, green shipping, logistics, and working capital and risk management services.
Additionally, as part of the agreement, Blastr and Cargill have signed a convertible loan agreement of USD 3 mln, further solidifying Cargill’s equity investment in Blastr’s Series A financing. Cargill will also provide support to Blastr in developing and commercializing ultra-low CO2 steel products for the European market.
Over the next few months, both companies will work closely together to finalize definitive agreements, covering the areas included in their strategic collaboration. This collaboration aims to bring ultra-low CO2 steel to global customers and accelerate the realization of their shared ambition.
Blastr’s goal is to produce 2.5 mln tons of cost-competitive, ultra-low carbon steel, with a remarkable 90pct reduction in Scope 1-3 emissions compared to conventional steel production. The company plans to establish production facilities in the Nordic Region, further strengthening their commitment to sustainable steel production.
