ArcelorMittal Forms $100 Million Yearly Green Steel Innovation Fund
March 17 2021 - 2:10PM
Dow Jones News
By Dieter Holger
Steelmaker ArcelorMittal created a fund that aims to invest $100
million a year to develop technologies to help the steel industry
reach net-zero emissions, a challenge the sector needs to meet to
protect its bottom line.
The Luxembourg-based manufacturer said Thursday that companies
are eligible for the innovation fund if they are creating
commercially scaleable technologies that have strong potential to
help ArcelorMittal reach net-zero emissions by 2050, a pledge it
made late last year.
"The heart of these efforts lie in the work we are undertaking
to develop and deploy several breakthrough steelmaking
technologies," Chief Executive Aditya Mittal, who will chair the
fund, said in prepared remarks. "We believe these can make
carbon-neutral steelmaking a reality."
He said the company expects to have pilot plants running next
year.
Heavy industries like steel are difficult to decarbonize since
they require very high heat or fossil fuels, analysts say. If
steelmakers are unable to lower their environmental impact, the
potential value of 14% of the companies is at risk as customer
habits, regulation and investor pressure on climate change mounts,
according to consultancy McKinsey & Co.
ArcelorMittal also launched certificates for green and recycled
steel to help its customers meet their own environmental goals.
Write to Dieter Holger at dieter.holger@wsj.com;
@dieterholger
(END) Dow Jones Newswires
March 17, 2021 13:55 ET (17:55 GMT)
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