ArcelorMittal Wants to Build First Big Zero-Carbon Steel Plant
ArcelorMittal SA has signed a memorandum of understanding with the Spanish government for a 1 billion euro ($1.2 billion) investment to build the world’s first large-scale zero-carbon steel plant.
The company would build a unit that processes iron ore using green hydrogen at its plant in Gijon, a spokesperson for the firm said in a statement today. That metal would then supply a mill in Sestao that would use renewable electricity to produce 1.6 million tonnes of carbon-free steel a year.
It would be the biggest green steel plant coming online by 2025 globally, and represents a significant step for an industry facing a titanic decarbonizing task.
Steelmaking relies on burning billions of tons of coal, emitting more carbon dioxide each year than cars, buses and motorbikes combined. Upgrading to zero-carbon production will require massive investment, something the usually low margin business may struggle to afford.
It’s not certain how much cash Spain will contribute. In the statement, ArcelorMittal said it expects support provided to be “at least half of the additional cost to enable its operations to remain competitive.” The company did not specify if it needed the aid as a grant or loan.
July 28, 2021