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ArcelorMittal (‘the Company’) has just announced it has signed an agreement to acquire an 80% shareholding in voestalpine’s world-class Hot Briquetted Iron (‘HBI’) plant located in Corpus Christi, Texas. voestalpine will retain the remaining 20%. The transaction values the Corpus Christi operations at $1 billion and closing is subject to customary regulatory approvals.

The state-of-the-art plant, which was opened in October 2016, is one of the largest of its kind in the world. It has an annual capacity of two million tonnes of HBI, a high-quality feedstock made through the direct reduction of iron ore which is used to produce high-quality steel grades in an electric arc furnace (‘EAF’), but which can also be used in blast furnaces, resulting in lower coke consumption. HBI is a premium, compacted form of Direct Reduced Iron (‘DRI’) developed to overcome issues associated with shipping and handling DRI.

In parallel with the transaction, ArcelorMittal has signed a long-term offtake agreement with voestalpine to supply an annual volume of HBI commensurate to voestalpine’s equity stake to its steel mills in Donawitz and Linz, Austria. The remaining balance of production will be delivered to third parties under existing supply contracts, and to ArcelorMittal facilities, including to AM/NS Calvert in Alabama, upon the commissioning of its 1.5 million tonne EAF, expected in the second half of 2023.

arcelormittal 14042022

Commenting, ArcelorMittal CEO, Aditya Mittal, said:

“This is a compelling strategic acquisition for our company. It accelerates both our progression into producing high-quality metallic feedstock for EAFs and our global decarbonisation journey. The facility is world-class and is ideally located, with its own deep-water port. There is also unused land on the site which provides interesting options for further development.

“ArcelorMittal is already one of the world’s largest producers of DRI. This acquisition will further strengthen our position and guarantee security of supply to AM/NS Calvert, while our experience will bring significant value to the asset. DRI is a feedstock which has a very important role to play in our decarbonisation ambitions, as we have announced plans to construct DRI facilities at several sites across Europe and in Canada. Today’s transaction therefore represents an important further step in our climate action journey. Finally, I would like to thank the executive management team at voestalpine and look forward to developing a strong partnership with them.”

The Corpus Christi facility, which covers an area of two square kilometers and employs over 270 people, is located in an optimal coastal position with direct access to a broad and deep shipping channel which enables cost effective transportation to the Americas and Europe. It incorporates best-in-class technology and equipment supplied by MIDREX Technologies Inc., a leading supplier of DRI solutions. It currently uses natural gas to directly reduce iron ore pellets into HBI with an Fe content which exceeds 91%. However, the plant does have the potential to transition to 100% hydrogen, with the Texas coast presenting advantageous weather conditions to produce renewable energy powered green hydrogen. The use of natural gas rather than coal as the current energy input and reductant means that DRI-EAF steelmaking carries a significantly lower carbon footprint than blast furnace-basic oxygen furnace steelmaking. DRI/HBI is therefore expected to play a prominent role in the decarbonisation of the steel industry, a process ArcelorMittal intends to lead.

ArcelorMittal is a world leader in DRI production, with c. nine million tonnes of annual production capacity (c. 15 million tonnes including AM/NS India). DRI – ultimately produced using green hydrogen – sits at the heart of the Company’s Innovative-DRI steelmaking pathway, one of two pathways ArcelorMittal has developed which hold the potential to deliver carbon-neutral steelmaking.

Over the past year, the Company has accelerated its Innovative-DRI strategy, announcing projects to construct additional DRI and EAF capacity at its operations in Belgium, Canada, France and Spain. The combined investment for the four projects totals US$5.6 billion, with anticipated carbon emissions reduction totalling 19.5 million tonnes, which is [1]equivalent to the greenhouse gas emissions from 4,240,858 cars being driven for a year. These projects sit at the heart of the company’s target to reduce its CO2e emissions intensity by 25% by 2030 group-wide, and in Europe by 35% by 2030.

More details on ArcelorMittal’s climate action ambitions, strategy, technologies and ongoing decarbonisation projects can be found here.

[1] Calculated using the US EPA greenhouse gas equivalencies calculator - https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator

About ArcelorMittal

ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries and primary steelmaking facilities in 16 countries. In 2021, ArcelorMittal had revenues of $76.6 billion and crude steel production of 69.1 million metric tonnes, while iron ore production reached 50.9 million metric tonnes. Our goal is to help build a better world with smarter steels. Steels made using innovative processes which use less energy, emit significantly less carbon and reduce costs. Steels that are cleaner, stronger and reusable. Steels for electric vehicles and renewable energy infrastructure that will support societies as they transform through this century. With steel at our core, our inventive people and an entrepreneurial culture at heart, we will support the world in making that change. This is what we believe it takes to be the steel company of the future. ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS). For more information about ArcelorMittal please visit: http://corporate.arcelormittal.com/

http://corporate.arcelormittal.com/

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In its announcement of 11 February 2022 regarding a new $1 billion share buyback program, ArcelorMittal noted the declared intention of its Significant Shareholder to sell shares to it in proportion to shares purchased on the market to maintain its percentage shareholding.

2019 mar 21

ArcelorMittal has since been informed by the Significant Shareholder that it has decided not to make such sales; accordingly its percentage holding of issued and outstanding shares (which stood at 36.3% as of January 31, 2022) will increase as the share buyback program is implemented.

About ArcelorMittal

ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries and primary steelmaking facilities in 17 countries. In 2020, ArcelorMittal had revenues of $53.3 billion and crude steel production of 71.5 million metric tonnes, while iron ore production reached 58.0 million metric tonnes. Our goal is to help build a better world with smarter steels. Steels made using innovative processes which use less energy, emit significantly less carbon and reduce costs. Steels that are cleaner, stronger and reusable. Steels for electric vehicles and renewable energy infrastructure that will support societies as they transform through this century. With steel at our core, our inventive people and an entrepreneurial culture at heart, we will support the world in making that change. This is what we believe it takes to be the steel company of the future. ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS). For more information about ArcelorMittal please visit: http://corporate.arcelormittal.com/

http://corporate.arcelormittal.com/
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ArcelorMittal (the ‘Company’) has just confirmed with the Government of Ontario its plan for a c. CAD$1.8 billion investment in decarbonisation technologies at ArcelorMittal Dofasco’s plant in Hamilton. As announced in July, 2021, the investment will reduce annual CO2 emissions at ArcelorMittal’s Hamilton, Ontario operations by approximately 3 million tonnes, which represents approximately 60% of emissions. This means the Hamilton plant will transition away from the blast furnace-basic oxygen furnace steelmaking production route to the Direct Reduced Iron (DRI) – Electric Arc Furnace (EAF) production route, which carries a significantly lower carbon footprint.

The project is scheduled to be complete by 2028, although the Company is looking for opportunities to accelerate the project timelines.

The new manufacturing processes contribute to a considerable reduction of CO2 emissions and deliver other positive environmental impacts including the elimination of emissions and flaring from coke making and ironmaking operations.

The investment was contingent on support from the governments of Canada and Ontario. In July 2021 the Government of Canada announced it will invest CAD$400 million in the project and today, the Government of Ontario announced it will invest CAD$500 million in the project. This secures project funding and firms up the investment.

Today’s announcement was made at an event in ArcelorMittal Dofasco’s plant in Hamilton, which was attended by ArcelorMittal North America CEO John Brett, ArcelorMittal Dofasco President and CEO Ron Bedard, Ontario Premier Doug Ford, Minister of Economic Development Job Creation and Trade Vic Fedeli, Minister of Energy Todd Smith and MPP Donna Skelly.

At the heart of the plan is a 2.5 million tonne capacity DRI facility and an EAF facility capable of producing 2.4 million tonnes of high-quality steel through its existing secondary metallurgy and secondary casting facilities. Modification of the existing EAF facility and continuous casters will also be undertaken to align productivity, quality and energy capabilities between all assets in the new footprint.

dofasco image

This project contributes to the sustainability of well-paying skilled positions in advanced manufacturing and is also expected to support as many as 2,500 jobs during the engineering and construction phases. It will also support ArcelorMittal Dofasco’s customers decarbonisation ambitions while further enhancing ArcelorMittal Dofasco’s capability to support the most demanding product segments including automotive exposed, advanced high strength steels, and consumer packing.

This new production route for ArcelorMittal Dofasco will provide a technically advanced manufacturing environment for operations, maintenance, and technology staff to work in, with improved health and safety. New positions, training, and development will be provided for employees moving from existing business units to new assets, with approximately 160,000 training hours required to transition our workforce to the new footprint.

Announcing the investment, Vic Fedeli, Minster of Economic Development Job Creation and Trade said:

“From day one, our government’s plan has been to unleash Ontario’s economic potential by reducing the cost of doing business in Ontario by nearly $7 billion a year. This once-in-a-generation investment to transform the province into a world-leading producer of green steel is a major step forward as we strive for a full economic recovery and transform our auto supply chains to build the car of the future – right here in Ontario.”

Speaking at the announcement in Hamilton, John Brett, ArcelorMittal North America CEO, said:

“Reducing our CO2 emissions intensity worldwide by 25% by 2030 is an ambitious target for a steel and mining company; but we believe it is achievable and that it is our responsibility to invent or innovate the processes and technologies that will enable us to reach that goal. As part of that, we understand that in the coming years, the assets used to make steel will undergo a transformation on a scale not seen for many decades.”

Highlighting the impact of the announcement, ArcelorMittal Dofasco President and CEO Ron Bedard said:

“This is the most significant construction project ever undertaken at Dofasco. And the most important achievement in the project timeline will be that everyone working on site is working safely and returning home to their family unharmed.

“All options for the newest, most advanced technology that achieves maximum carbon reduction for steelmaking, enhanced product capability and quality, and advanced manufacturing employment opportunities were explored. Extensive benchmarking and modelling were also completed in preparing the ultimate plan for the sustainability of the environment, the company, employees, customers, and the community.”

In addition to Canada, the Company has also announced investments in decarbonisation technologies in Belgium, France and Spain. Combined investment for the four projects totals US$5.6 billion, with anticipated carbon emissions reduction totalling 19.5 million tonnes, which is equivalent to the greenhouse gas emissions from 4,240,858 cars being driven for a year[1]. These projects sit at the heart of the Company’s target to reduce its CO2e emissions intensity by 25% by 2030 group-wide, and in Europe by 35% by 2030.  

[1] Calculated using the US EPA greenhouse gas equivalencies calculator - https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator

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At an event held at COP26, ArcelorMittal (‘the Company’) and the government of Quebec announced a CAD$205 million investment by ArcelorMittal Mining Canada (‘AMMC’) in its Port-Cartier pellet plant, enabling this facility to convert its entire [1] 10 million tonne annual pellet production to direct reduced iron (‘DRI’) pellets by the end of 2025.

The investment, in which the Quebec government will contribute through an electricity rebate of up to CAD$80 million, will enable the Port-Cartier plant to become one of the world’s largest producers of DRI pellets, the raw material feedstock for ironmaking in a DRI furnace. The project includes the implementation of a flotation system that will enable a significant reduction of silica in the iron ore pellets, facilitating the production of a very high-quality pellet.

The project will deliver a direct annual CO2e reduction of approximately 200,000 tonnes at AMMC’s Port-Cartier pellet plant, equivalent to over 20% of the pellet plant’s total annual CO2e emissions. This reduction in CO2e emissions will be achieved through a reduction in the energy required during the pelletising process.

A DRI plant uses natural gas to reduce iron ore, resulting in a significant reduction in CO2 emissions compared with coal-based blast furnace ironmaking. In Hamburg, Germany, ArcelorMittal is trialing replacing natural gas with hydrogen to make DRI, with its industrial scale pilot project anticipated to be commissioned before the end of 2025. The DRI installations the Company has announced it is developing in Belgium, Canada and Spain are all being constructed to be hydrogen-ready, so as and when green hydrogen is available in sufficient quantities at affordable prices the Company can produce DRI with near zero-carbon emissions.

Approximately 250 jobs are expected to be created during the construction phase of the project in Port-Cartier, which is scheduled to be begin mid-2023 and complete before the end of 2025.

arcelormittal usine bouletage port cartier

Expressing the Quebec government’s support for the project, Premier François Legault said:

“With this project, the Port-Cartier plant will become one of the world's largest producers of direct reduction pellets. The market is increasingly evolving towards this technology. We are therefore ensuring that ArcelorMittal will continue to create wealth in Quebec for many years. We are positioning our regions at the heart of the green economy of tomorrow. My message to companies looking for a place to reduce their GHG emissions is come and see us. We'll help you carry out your projects promptly. Quebec is the best place in the world to invest in the green economy. To build together a greener, more prosperous and prouder Quebec.’’

Aditya Mittal, ArcelorMittal CEO, said:

“This project has an important role to play in our efforts to reduce our group’s CO2e emissions intensity by 25% by 2030, and our longer-term ambition to reach net zero by 2050. Not only does it deliver a significant reduction in our emissions at AMMC, but it also expands our ability to produce high-quality direct reduced iron pellets, which we will need in significant volumes as we transition to DRI-EAF steelmaking at our steel plants in Canada and Europe.

“I am grateful to Premier Legault and his government for the support it is providing in realising this project. It is the first significant decarbonisation project we have announced for our mining business and fitting that we are able to make this announcement at COP26 as it exemplifies the transformational change we need to deliver this decade as we move towards becoming a carbon-neutral business.”

Mapi Mobwano, CEO, ArcelorMittal Mining Canada, added:

“This investment will see us become one of the biggest direct reduction pellet producers in the world, thereby propelling ArcelorMittal Mining Canada into the forefront of mining and steel decarbonisation. From 2025 onwards we will have the capacity to produce ten million tonnes of very high-quality iron oxide pellets, with low silica content and high iron density, which will be highly strategic in the years ahead. This transformation will enable us to reduce our own current emissions by 200,000 tonnes of CO2e per year – equivalent to removing 57,600 cars from the road each year. Moreover, it will support a significant reduction in the carbon footprint of primary steelmaking. These pellets are the feedstock for DRI-EAF steelmaking, which given its significantly lower carbon footprint is expected to replace a significant amount of blast furnace capacity in the coming decades. It also provides a boost to the local economy and community as 250 jobs will be created for the construction phase which will start in the summer of 2023.”

[1] AMMC’s pellet plant currently produces 10 million tonnes of pellets annually, of which 7 million tonnes are blast furnace pellets and 3 million tonnes are direct reduced iron pellets

About ArcelorMittal

ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries and primary steelmaking facilities in 17 countries. In 2020, ArcelorMittal had revenues of $53.3 billion and crude steel production of 71.5 million metric tonnes, while iron ore production reached 58.0 million metric tonnes. Our goal is to help build a better world with smarter steels. Steels made using innovative processes which use less energy, emit significantly less carbon and reduce costs. Steels that are cleaner, stronger and reusable. Steels for electric vehicles and renewable energy infrastructure that will support societies as they transform through this century. With steel at our core, our inventive people and an entrepreneurial culture at heart, we will support the world in making that change. This is what we believe it takes to be the steel company of the future. ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS). For more information about ArcelorMittal please visit: http://corporate.arcelormittal.com/

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ArcelorMittal Belgium will reduce CO2 emissions by 3.9 million tonnes per year by 2030, by building a 2.5 million-tonne direct reduced iron (DRI) plant and two electric furnaces at its Gent site, to operate alongside its state-of-the-art blast furnace that is ready to take waste wood and plastics as a substitute for fossil carbon.

ArcelorMittal announces that it has signed a letter of intent with the Governments of Belgium and Flanders, supporting a €1.1 billion project to build a 2.5 million-tonne direct reduced iron (DRI) plant at its site in Gent, as well as two new electric furnaces.

A DRI plant uses natural gas, and potentially hydrogen, instead of coal to reduce iron ore, resulting in a large reduction in CO2 emissions compared with blast furnace ironmaking. The two electric furnaces will melt the DRI and scrap steel, which will then be transformed in the steel shop into steel slabs and then further processed into finished products.

Once the DRI and electric furnaces are built, there will be a transition period during which production will move gradually from blast furnace A, to the DRI and electric furnaces, after which blast furnace A will be closed as it reaches the end of its life. By 2030, this will result in a reduction of around three million tonnes of CO2 emissions each year.

The support of both the national and the Flanders governments in this project is crucial given the significant cost associated with the transition to carbon-neutral steelmaking.

Approval from the European Commission for the funding support will also be required.

210429steelanolcampagne 0077 hdr

Smart Carbon and DRI synergies

The DRI plant will operate alongside Gent’s blast furnace B, which restarted production in March 2021 following a significant investment of €195 million.

Various decarbonisation initiatives, including the commissioning in 2022 of Gent’s Steelanol/Carbalyst and Torero projects will see annual CO2 emissions reduction of 0.9 million tonnes by 2030.

The combination of the new DRI plant alongside a sustainable, state-of-the-art blast furnace enables the creation of unique synergies in ArcelorMittal Belgium’s roadmap to climate-neutral steelmaking.

Combined, the various initiatives will enable ArcelorMittal Belgium to reduce its CO2 emissions by 3.9 million tonnes per year by 2030 (on a scope 1 and 2 basis, compared with 2018), which is equivalent to the greenhouse gas emissions from 848,172 cars being driven for a year[1].  As a result, ArcelorMittal Belgium will make a significant contribution to ArcelorMittal Europe’s ambition to reduce CO2e emissions intensity by 35% by 2030 and to become carbon neutral by 2050.

Roadmap to 2050

The hybrid model approach of Smart Carbon and Innovative DRI steelmaking in Gent fits into ArcelorMittal Belgium’s CO2 roadmap which consists of three axes:

  • Further improvement of material and energy efficiency as well as increased scrap usage
  • The implementation of Smart Carbon technologies:
  1. Replacing fossil carbon with circular and waste carbon: 'Fresh' raw materials will increasingly be replaced with waste products, in an environmentally and economically feasible way. The Torero project will pre-treat waste wood from container parks to produce bio-coal suitable for the blast furnace process. ArcelorMittal Belgium also has demonstration projects running with plastic waste that could be injected into the blast furnaces in the form of powder or gas.
  2. Reforming waste gas into useful chemical compounds: In 2022, ArcelorMittal Belgium will commission a plant (Steelanol/Carbalyst) to biologically convert gas from the steelmaking process into bioethanol.
  3. Separating CO2 for reuse or storage.
  • Hydrogen: replacing carbon as a reductant, with hydrogen (ultimately green hydrogen, when it is available commercially).

Alexander De Croo, Prime Minister of Belgium, said:

To tackle the climate crisis, we need ambitious action. European countries are leading the way, with clear targets to reduce greenhouse gas emissions by 55% by 2030 and climate neutrality by 2050. It is good to see that sectors with a large footprint are also joining the race by investing in innovation that reduces emissions and, in the long term, achieves carbon neutrality. This major investment in new technology by ArcelorMittal is important for the wider Ghent region, for reducing our country's footprint, and shows that decarbonising our economy is a joint effort.”

Jan Jambon, Flemish Minister-President, said:

“We believe that technological breakthroughs are key in delivering on the climate agenda. The ambitious roadmap brought forward by ArcelorMittal for its site in Ghent is in that sense an opportunity.”

Vincent Van Peteghem, Deputy Prime Minister of the Belgian Government and Belgian Minister of Finance, said:

“In order for us to enable climate transition for a better, healthier tomorrow it is crucial for government and industry to come together in this crucial pivoting point in time. ArcelorMittal is proving to be a leading example for this transition in our region. This joint effort is not only securing the presence of ArcelorMittal in our region but is also quintessential in lending the Ghent region healthy & clean air for all.”

Hilde Crevits, Deputy Prime Minister of the Flemish Government and Flemish Minister for Economy, Innovation, Work, Social Economy and Agriculture, said:

“ArcelorMittal has chosen a ground-breaking and innovative technology that will significantly reduce emissions from one of their blast furnaces, resulting in a 4% reduction of emissions in Flanders. This unique project will serve as an example to the rest of Europe on how to realise the goal of climate neutrality. Simultaneously, it ensures the sustainable creation of jobs and strengthens ArcelorMittal's competitiveness, to the benefit of Flanders’ welfare and prosperity.”

Tinne Van der Straeten, Belgian Minster of Energy, said:

“This ambitious project shows that industry is a crucial partner to achieve a climate neutral society by 2050. It will be one of the largest climate investments in Belgium that will anchor ArcelorMittal in the Ghent region, that guarantees employment and that will provide low carbon and ultimately carbon neutral steel. Green steels is needed in the switch to 100% renewable energy. What is good for the climate is good for the economy and for everyone.”

Matthias Diependaele, Flemish Minister of Finance and Budget, Housing and Immovable Heritage, said:

“This investment for ArcelorMittal's infrastructure is a sign of responsible Flemish policy. We are investing in a sustainable future for the country, both in terms of emissions and in securing employment in the port of Ghent.”

Aditya Mittal, CEO, ArcelorMittal, said:

“Today’s announcement is the third major decarbonisation project we have announced in the past two months, demonstrating how we are taking firm steps to decarbonise our operations and crucially, to accelerate progress in the decade ahead. None of these projects would be possible without government backing, so we are very grateful to the governments of Belgium and Flanders for their ongoing support as we transition to net-zero steelmaking. Today’s announcement of our project to build a 2.5 million-tonne DRI plant that will co-exist with and complement the Smart Carbon pathway in which we are already investing in Gent, is an example of the kind of transformational change we want and need to implement in order to accelerate ArcelorMittal’s journey to net-zero steelmaking.”

Geert Van Poelvoorde, CEO, ArcelorMittal Europe, said:

“ArcelorMittal Europe recently announced a more ambitious target for reducing CO2 emissions, from a 30% to a 35% decrease by 2030. We are able to reduce our environmental impact faster, thanks to projects such as this, which embody the cooperation and innovation that we need in order to succeed. ArcelorMittal Belgium has played a vital role in the European business’ decarbonisation strategy from the outset, and as a result of today’s announcement, we will continue to see it at the forefront as we move closer to net-zero steelmaking.”

Manfred Van Vlierberghe, CEO, ArcelorMittal Belgium, said:

“ArcelorMittal Belgium has a passion for sustainability and circularity. We continue to invest and launch new projects in order to remain at the forefront of energy and climate transition. This €1.1 billion project is a major milestone in our decarbonisation journey. The DRI plant and two electric furnaces will result in a sharp decrease of CO2 emissions while the relined blast furnace will contribute to recycling waste wood and end-of-life plastics. This approach contributes to strengthening our global leadership in terms of CO2 and energy efficiency in the steel sector.”

[1] Calculated using the US EPA greenhouse gas equivalencies calculator - https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator

About ArcelorMittal

ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries and primary steelmaking facilities in 17 countries. In 2020, ArcelorMittal had revenues of $53.3 billion and crude steel production of 71.5 million metric tonnes, while iron ore production reached 58.0 million metric tonnes. Our goal is to help build a better world with smarter steels. Steels made using innovative processes which use less energy, emit significantly less carbon and reduce costs. Steels that are cleaner, stronger and reusable. Steels for electric vehicles and renewable energy infrastructure that will support societies as they transform through this century. With steel at our core, our inventive people and an entrepreneurial culture at heart, we will support the world in making that change. This is what we believe it takes to be the steel company of the future. ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS). For more information about ArcelorMittal please visit: http://corporate.arcelormittal.com/

http://corporate.arcelormittal.com/
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New DRI and EAF installations at ArcelorMittal Dofasco in Hamilton, Ontario will reduce carbon emissions by approximately 60%

ArcelorMittal (the ‘Company’) has just announced with the Government of Canada its intention for a CAD$1.765 billion investment in decarbonization technologies at ArcelorMittal Dofasco’s plant in Hamilton. The intended investments will reduce annual CO2 emissions at ArcelorMittal’s Hamilton, Ontario operations by approximately 3 million tonnes, which represents approximately 60% of emissions, within the next seven years. This means the Hamilton plant will transition away from the blast furnace-basic oxygen furnace steelmaking production route to the Direct Reduced Iron (DRI) – Electric Arc Furnace (EAF) production route, which carries a significantly lower carbon footprint.

ArcelorMittal will introduce new manufacturing processes that contribute to a considerable reduction of CO2 emissions and deliver other positive environmental impacts including the elimination of emissions and flaring from coke making and ironmaking operations.

2021 08 02 090736The investment is contingent on support from the governments of Canada and Ontario. Today the Government of Canada announced it will invest CAD$400 million in the project. The Company is in discussions with the Government of Ontario regarding its support.

The announcement was made at an event in ArcelorMittal Dofasco’s plant in Hamilton, which was attended by ArcelorMittal CEO Aditya Mittal, ArcelorMittal Dofasco President and CEO Ron Bedard, Canada’s Deputy Prime Minister Chrystia Freeland, Minister of Innovation, Science and Industry François-Philippe Champagne and Minister of Labour Filomena Tassi.

At the heart of the plan is a 2 million tonne capacity DRI facility and an EAF facility capable of producing 2.4 million tonnes of high-quality steel through its existing secondary metallurgy and secondary casting facilities. Modification of the existing EAF facility and continuous casters will also be undertaken to align productivity, quality and energy capabilities between all assets in the new footprint.

The new DRI and EAF will be in production before the end of 2028.

This project contributes to the sustainability of well-paying skilled positions in advanced manufacturing and is also expected to support as many as 2,500 jobs during the engineering and construction phases. It will also support ArcelorMittal Dofasco’s customers decarbonization ambitions while further enhancing ArcelorMittal Dofasco’s capability to support the most demanding product segments including automotive exposed, advanced high strength steels, and consumer packing.

This new production route for ArcelorMittal Dofasco will provide a technically advanced manufacturing environment for operations, maintenance, and technology staff to work in, with improved health and safety. New positions, training, and development will be provided for employees moving from existing business units to new assets, with approximately 160,000 training hours required to transition our workforce to the new footprint.

Expressing Canada’s support for the plan, Deputy and Minister of Finance Chrystia Freeland said:

“Our government has been steadfast in defending and championing our steel workers. Today’s announcement, through the Net Zero Accelerator, is about investing in the low-carbon transformation of Canadian industry, taking serious action in the global fight against climate change, and supporting good middle-class jobs in Hamilton. We will continue to be there to support growth and a strong economic future for our steel workers and the broader Hamilton community.”

François-Philippe Champagne, Minister of Innovation, Science and Industry, said:

“We are supporting our steel workers and companies like ArcelorMittal Dofasco as they seize today’s opportunities in the low-carbon economy and they do their part in the fight against climate change. This investment will ensure that Canada’s largest producer of flat-rolled steel adopts innovative technologies, continues to provide economic opportunities for Canadian workers, and contributes meaningfully toward our climate targets. This investment will create good jobs in communities like Hamilton and clean Canadian-made products for the world for decades to come.”

Filomena Tassi, Minister of Labour, added:

“This $400 million investment by our government in reducing greenhouse gas emissions at ArcelorMittal Dofasco will transform Hamilton. It will position ArcelorMittal Dofasco to become a world leader in the development of advanced steels and make a significant contribution to achieving Canada’s carbon pollution reduction targets. We are proud to work with organizations like ArcelorMittal Dofasco that are committed to building a stronger, more competitive economy by innovating to fight climate change and creating 2,500 new jobs.”

Speaking at the announcement in Hamilton, Aditya Mittal, CEO ArcelorMittal, said:

“The plans we have announced today represent a historic moment for ArcelorMittal in Canada and North America, marking the beginning of a new era of steelmaking in Hamilton, that will result in a 60% drop in CO2 emissions within the next seven years. We are very pleased to be in partnership with the Government of Canada - as partners, we all recognize that it is vital to accelerate our carbon emissions reduction and strengthen our climate action. Indeed progress in the next decade is vital if the world is to reach net zero by 2050.

“This project is part of ArcelorMittal’s new global 25% CO2 2030 emissions reduction target which was announced yesterday in our second climate action report. DRI-EAF technology, such as that being introduced in Dofasco, is at the heart of our new target although we do also continue to develop our smart carbon technology route. Transitioning from the blast furnace route to the DRI-route, offers an immediate significant reduction in emissions in the first phase through natural gas and then in a second phase, which we call innovative DRI, harnessing green hydrogen or other Smart Carbon technologies.

“This is the first significant decarbonization project we have announced outside Europe and again reflects ArcelorMittal’s determination to lead the decarbonization of the steel industry. Across the company our people are highly motivated to demonstrate that steel can reach net zero and will be the core material for a carbon-neutral world. This project in Dofasco is a very significant and important milestone in this journey.”

Highlighting the transformative impact of the announcement, ArcelorMittal Dofasco President and CEO Ron Bedard said:

“The Government of Canada’s investment accelerates the realization of low carbon steelmaking in Canada. This significant total investment in Hamilton will transform our organization and deliver exceptional benefits to all our stakeholders including our customers, our employees and the community.

“The new steelmaking footprint will improve our capability to support the most demanding product segments with advanced high strength steels, including those used for the emerging electric vehicles in the automotive sector. The new steelmaking stream also sustains well-paying skilled positions in advanced manufacturing in Ontario, with the opportunity for our highly skilled employees to work in the most technically advanced Steelmaking assets in North America. The company’s bayfront property has been re-imagined and we are well on the way to a significant and broad reduction in environmental impacts, contributing to the health and sustainability of our community, the environment and the economy.”

ArcelorMittal has an ambition to be net zero by 2050. Yesterday the Company published its second group Climate Action Report in which it set a new 2030 global carbon emissions intensity reduction target of 25%. It has also increased its European 2030 carbon emissions intensity target to 35%, from 30%. ArcelorMittal estimates the cost of achieving its global 2030 carbon reduction target is c. US$10 billion and believes government funding support of approximately 50% is required to enable the Company to remain competitive regionally and globally through the transition period given the capital investment required and higher operating costs of low-carbon steelmaking technologies. The Company has developed two technology pathways, Smart Carbon and Innovative DRI, both of which it believes will have an important role to play in helping the Company achieve net zero by 2050.

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arcelor france 1ArcelorMittal’s plant in Trévoux (Rhône-Alpes, France) will install two innovative production tools to produce customised heat exchangers for the heating, ventilation and air conditioning (HVAC) industry. This new activity adds to the current welding and machining offer at the site which is part of SoluStil, the leader in sheet metalwork and a subsidiary of ArcelorMittal. The €450,000 investment will help expand and strengthen the plant’s activities by supplying added-value solutions to its customers. 

The Trévoux plant will be equipped with a roller – forming tubes from steel plates – and a 3,200mm wide welding rail (tube welding), giving the plant the ability to produce the internal tubes used in heat exchangers. Until now, the Trévoux plant had to buy tubes from specialists and then weld other elements from the exchanger (tube plates and accessories) using a robot. Now, products will be assembled from plates that are directly supplied by the ArcelorMittal group.

arcelor france 2Producing its own tubes gives the plant an important competitive advantage, since it will be able to adapt the tubes in terms of dimensions and steel quality to meet customers’ requirements. The new welding machine, which welds in one step instead of two, will reduce the production process time by 40%.

With these new machines, the site will be able to support the growth of Carrier, the world’s leader in air conditioning in particular, by providing a full range of solutions to meet their needs. 

Frédéric Mann, Trévoux plant director, said: “This investment, which is critical for the steel sheet market, further strengthens our plant’s activities. Thanks to the investment, we are evolving from being a metal parts supplier to a solutions provider. The Trévoux site will now become a specialist in producing and assembling heat exchangers to meet our customers’ needs, thanks to the innovative production processes now in place”.

About SoluStil

SoluStil is a leading a leading sheet metalwork company driven by high quality and innovation. Mastering a wide range of processes, we are able to produce state-of-the-art design solutions from basic parts to critical functions that meet the specific needs of our wide variety of customers. 

On the industrial side, we work with key players in major markets such as aerospace, railway, automotive, agriculture and construction equipment, machining tools, building equipment, energy and infrastructure. SoluStil works in strong partnership with its customers to provide key research and development and industrial support, particularly in niche markets. 

As part of the ArcelorMittal group, SoluStil has a presence in continental Europe thanks to its network of sites dedicated to sheet metalwork and is developing partnerships in the Middle East and BRIC countries.

About ArcelorMittal

ArcelorMittal is the world's leading steel and mining company, with a presence in more than 60 countries and an industrial footprint in over 20 countries. Guided by a philosophy to produce safe, sustainable steel, we are the leading supplier of quality steel in the major global steel markets including automotive, construction, household appliances and packaging, with world-class research and development and outstanding distribution networks. 

Through our core values of sustainability, quality and leadership, we operate responsibly with respect to the health, safety and wellbeing of our employees, contractors and the communities in which we operate.

For us, steel is the fabric of life, as it is at the heart of the modern world from railways to cars and washing machines. We are actively researching and producing steel-based technologies and solutions that make many of the products and components we use in our everyday lives more energy-efficient. 

We are one of the world’s five largest producers of iron ore and metallurgical coal and our mining business is an essential part of our growth strategy. With a geographically diversified portfolio of iron ore and coal assets, we are strategically positioned to serve our network of steel plants and the external global market. While our steel operations are important customers, our supply to the external market is increasing as we grow. 

In 2013, ArcelorMittal had revenues of $79.4 billion and crude steel production of 91.2 million tonnes, while own iron ore production reached 58.4 million tonnes.

ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).

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