Canada Nickel (TSXV: CNC) and RWE Supply & Trading (RWEST) have signed a memorandum of understanding (MOU) to explore a strategic partnership to support the commercialization of low-carbon steel in North America and Europe.
Under the MOU, the companies will develop a sales strategy for semifinished steel, alloys and stainless products. RWEST said it will support Canada Nickel's compliance strategy, helping it meet EU Carbon Border Adjustment Mechanism (CBAM) regulations for its Net Zero Metals subsidiary.
“The timing of this strategic partnership could not be better. Implementation of CBAM driving higher EU carbon costs combined with persistent energy price volatility in Europe are creating real demand for stable energy, low-carbon steel supply,” said Mark Selby, the CEO and director of Canada Nickel. He added that the companies are looking to sign a definitive agreement later this year.
Marc Milligan, a senior member of RWEST’s team, said the partnership “fits squarely” with the company’s long-term strategy. “Low-carbon steel is essential for the planned expansion of offshore and onshore wind capacities and high-quality low-carbon nickel is essential for battery production to support battery storage development in the EU,” he said.
RWEST is a wholly-owned subsidiary of RWE Group, operating as the company’s trading arm. With approximately 2,000 employees and 14 trading offices globally, the company is one of Europe’s largest green energy traders.
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