Ukraine has the potential to become part of Europe’s green course – Ferrexpo

If Ukraine wants to become part of the European green transition, it needs to invest now in the production of DR pellets, green logistics, hydrogen, and automation. This was stated at the Vision 2030 summit by Yaroslavna Blonska, Acting CMO of Ferrexpo, an iron ore producer listed on the London Stock Exchange and operating in Ukraine. GMK Center was informed about this by the company.

Against the backdrop of global demand for industrial decarbonization, Ferrexpo is preparing to offer a response that could change the rules of the game in the steel market. At the heart of the strategy are pellets with a high iron content of 67% for the further production of “green” steel, which provide up to 37% less CO₂ emissions. According to Blonska, this is not just a competitive product, but an element of a new industrial ecosystem that is already taking shape in the EU.

Ferrexpo already supplies its products to leading global leaders, with whom it has signed a number of strategic memoranda. Its partners include steel giants from Austria, Germany, Japan, China, Slovakia, the Czech Republic, Turkey, Vietnam, and others.

The company’s green transition is not limited to its products. Ferrexpo is implementing the Green Mine initiative, a comprehensive program for decarbonization and modernization of its mining fleet (electric dump trucks, trolley-assist systems, battery-powered locomotives). This ensures reduced fuel consumption, lower emissions, extended equipment life, and significant capital cost savings.

As for the first results of the initiative, Ferrexpo has been using biofuel instead of gas since 2015, which has reduced gas consumption by 30%. In addition, in 2021, the company commissioned a 5 MW solar power plant.

The company’s green priorities include DR pellets, modernization of water and energy consumption, the use of hydrogen as an alternative to gas, and the study of alternative fuels and energy sources that can be used in production and logistics processes in the future. In addition, Ferrexpo is actively exploring the potential of hydrogen for large-scale industrial applications. In this way, the company is laying the foundation for future joint projects in the field of green steel industry in the post-war period.

“This is not just a technological improvement, but a step towards creating a complete green supply chain: from ore to steel. At the international level, in particular during the Ukraine Recovery Conference 2024 in Berlin, Ferrexpo’s developments formed the basis for a number of investment projects presented with the support of the Ministry of Economy and KSE. Their potential is to become the basis for a new low-carbon industry in Europe with Ukrainian roots,» said Yaroslavna Blonska.

It should be noted that in 2024, the company paid $50.7 million in taxes and royalties in Ukraine, which underscores its systemic role in the country’s financial stability.

Earlier, Ferrexpo announced its readiness to supply raw materials for “green” steel to European manufacturers. As Yaroslavna Blonska explained, the company has many years of experience working with EU customers, which has allowed it to significantly improve product quality and adapt to high European standards in terms of transparency, responsibility, and sustainable development.