TSX-V-listed Canada Nickel Company has announced a strategic commercial partnership with RWE Supply & Trading - a global energy and carbon trading firm - to support the commercialisation of low-carbon intermediate stainless and alloy steel products from Canada Nickel's wholly-owned downstream subsidiary Net Zero Metals.

Canada Nickel will supply feedstock from its Crawford nickel project.

The partnership gives Canada Nickel access to RWE's European and US customer base, deep carbon and emission legislation experience, and structuring and trading capabilities, which will help position Net Zero Metals' low-carbon steel ahead of accelerating EU carbon compliance costs.

Canada Nickel CEO and director Mark Selby says RWE's strategic focus on the energy transition aligns well with what the company is building at Net Zero Metals. "RWE's reach across European and US markets, combined with their deep carbon trading and Carbon Border Adjustment Mechanism (CBAM) expertise, makes them the ideal partner to support the commercialisation of our low-carbon steel and help us maximise value from the low-carbon attributes of both our nickel and steel products."

Selby explains that the timing of this partnership is ideal given the implementation of CBAM driving higher EU carbon costs, which, coupled with persistent energy price volatility, is creating demand for low-carbon steel supply.

RWE says Canada Nickel's potential to support significant low-carbon stainless and alloy intermediate steel production offers an attractive solution for the European energy transition. "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."

RWE adds that the partnership fits squarely in its long-term strategy to help decarbonise the European industry.

Under the memorandum of understanding agreed between the companies ahead of a definitive agreement, they have committed to undertake joint identification and prioritisation of target customers in the EU and US. They will develop product positioning and sales strategies in respect of semi-finished steel, alloys and stainless products, including long-term offtake structures. 

RWE will also support Canada Nickel's CBAM positioning and compliance strategy, while helping to translate the group's carbon advantage into commercial value for both Canada Nickel and its customers.