ArcelorMittal Sestao to become the world’s first full-scale zero carbon-emissions1 steel plant
July 13 2021 - 6:45AM
ArcelorMittal Sestao to become the world’s first full-scale zero
carbon-emissions1 steel plant
- Harnessing green hydrogen and renewable electricity,
the Sestao plant will achieve zero
carbon-emissions
13 July
2021,
13:45
CET
ArcelorMittal today announces that its Sestao plant in Spain
will become the world’s first full-scale zero carbon-emissions
steel plant.
The development is the result of a memorandum of understanding
signed today with the Government of Spain that will see an
investment of €1 billion in the construction of a green hydrogen
direct reduced iron (DRI) plant at its plant in Gijón, as well as a
new hybrid electric arc furnace (EAF). By 2025, the
Sestao plant – which manufactures a range of flat steel products
for the automotive and construction sectors, and general industry -
will produce 1.6 million tonnes of zero carbon-emissions steel
by:
- Changing the metallic input by increasing the proportion of
circular, recycled scrap, and using green hydrogen-produced DRI
from Gijón in its two existing EAFs.
- Powering all steelmaking assets (EAFs, rolling mill, finishing
lines) with renewable electricity.
- Introducing several key emerging technologies that will replace
the small, remaining use of fossil fuel in the steelmaking process
with carbon-neutral energy inputs, such as sustainable biomass or
green hydrogen.
Central to this development will be the construction of a 2.3
million-tonne green hydrogen DRI unit in Gijón. Around 1 million
tonnes of DRI will be transported to Sestao to be used a feedstock
for its two EAFs.
The national and the Basque government’s support in this project
is crucial, firstly from a funding perspective, given the
significant cost associated with the transition to carbon-neutral
steelmaking. Secondly, because it will enable ArcelorMittal to have
access to green hydrogen supplied through a consortium of companies
that will cooperate in the construction of the infrastructure
required in order to produce hydrogen in the Iberian Peninsula
using solar-powered electrolysis and to transport it directly
through a network of pipelines. The initiative involves the
construction of multiple large-scale solar farms, with hydrogen
produced in situ and with the corresponding impact in terms of
employment.
In addition to the investments in the DRI and EAF installations
in Gijón, ArcelorMittal will invest €50 million in Sestao. This
will fund the introduction of key emerging technologies required to
bring the plant to zero carbon-emissions, supporting 1.6 million
tonnes of production.
Looking further ahead, the company has also committed to
achieving net zero2 at the Sestao plant as soon as possible.
Commenting, Aditya Mittal, CEO ArcelorMittal,
said:
“It is widely understood that for the world to achieve net-zero
by 2050, faster progress over the next decade is essential. Having
announced a net-zero target for 2050, we therefore set ourselves
the challenge to identify how we could take an existing steel plant
to zero carbon-emissions within the next five years. Our teams have
been working incredibly hard to turn this ambition into the plan
that we have announced today. This is a hugely significant
development and demonstrates the strength of innovation embedded in
our people, our unparalleled technology leadership, and what can be
achieved through investment in existing steelmaking infrastructure.
It means ArcelorMittal will be the first company in the world to be
in a position to offer its customers meaningful volumes of zero
carbon-emissions steel. “The ability of the Sestao plant
to become the world’s first zero carbon-emissions steel plant would
not be possible without the support and partnership of the Spanish
government. This is a project that will require the support of many
different partners to succeed; the plan hinges on the supply of
affordable, mass-scale hydrogen, access to sustainable finance and
a supportive legal framework that allows us to be competitive
globally. The Spanish government has embraced the opportunity and
developed clearly defined plans to transition the country to having
the energy infrastructure that the green economy will require.
ArcelorMittal plans to switch Sestao to renewable electricity.
This, together with the green DRI and hydrogen feeding the burners,
will result in the Sestao plant achieving zero carbon-emissions. We
are also working to reduce Scope 3 emissions to zero.
“As a large emitter, the steel industry can make a vital
contribution to achieving net zero by 2050. This project
demonstrates what is achievable.”
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 On a Scope 1 and 2 basis2 Net zero meaning across Scopes 1, 2
and 3
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