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.
28 September 2021,
10:15 CET
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.
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 year1. 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:
- 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.
- 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.
- 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.”
ENDS
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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1 Calculated using the US EPA greenhouse gas
equivalencies calculator -
https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator
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