Canada Nickel Company (TSXV: CNC) has signed a memorandum of understanding with RWE Supply & Trading GmbH, a move aimed at getting low carbon stainless and alloy steel from its Net Zero Metals subsidiary into European and North American markets.
The agreement, signed June 1, gives Canada Nickel access to RWEST’s customer base across the EU and US, along with the trading firm’s expertise in carbon markets and the European Union’s Carbon Border Adjustment Mechanism. That regulatory angle sits at the centre of the arrangement. As CBAM raises the cost of carbon-intensive imports into Europe, steel produced with cleaner energy becomes more competitive on price.
The intermediate steel products would be made by Net Zero Metals using feed from Canada Nickel’s Crawford Nickel Project. Under the MOU, the two companies will jointly target customers, shape product positioning and sales strategy, and work toward long-term offtake structures covering semi-finished steel, alloys, and stainless products.
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RWEST will also help Canada Nickel navigate CBAM compliance and turn its carbon profile into a commercial selling point. The trading firm is expected to assist with access to export credit agencies as well, including German and EU financing groups.
Chief Executive Officer Mark Selby framed the timing as favourable. “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,” he said, adding that Ontario’s renewable power base gives the company a cost advantage that widens as carbon costs climb through the decade.
For RWEST, the interest is tied to Europe’s energy transition. Marc Milligan of the trading firm noted that low-carbon steel is needed for planned offshore and onshore wind expansion, while low-carbon nickel supports battery production for the region’s storage buildout.
The companies are targeting a definitive agreement within 2026.
Canada Nickel last traded at $1.43 on the TSX Venture.
