ArcelorMittal Europe defined its plans for processing low-carbon steel on Thursday, also requesting continued financial support from EU states and reiterating the need for carbon border tax adjustments.
The steelmaker’s plans for producing green steel, set out in a climate action report, outlined two methods to meet CO2 goals it committed to last year. It intends to reduce its CO2 emissions by 30pc by 2030, then reach carbon neutrality by 2050.
The company said the two courses are Smart Carbon and direct reduced iron (DRI), both of which are in development. The main difference, it noted, is that Smart Carbon offers quicker results because of its technological features, while the DRI method replaces mostly natural gas with hydrogen. However, based on current renewable hydrogen costs, this process is relatively expensive.
Using both methods should allow the company’s European operations to substantially cut CO2 emissions. As a result, the focus for 2030 becomes combining Smart Carbon technology with increased scrap usage by developing novel ways to elevate low-quality scrap metal use in primary steel production.
The steelmaker estimated the cost of fully executing Smart Carbon at €15-25bn ($16.82-28.04bn) and €30-40bn for the DRI path, excluding related infrastructure, which would cost an additional €15-200bn.
Aditya Mittal, president and chief financial officer of ArcelorMittal, and chief executive officer of ArcelorMittal Europe, said the company is doing a great deal of work to attain carbon neutrality through the use of technology. Steel will play a crucial role in helping Europe realize its Green Deal goals, and it has received essential backing from the EU, Mittal explained.
European steelmakers have been compelled to reduce carbon emissions but have expressed concern about maintaining profits in a competitive international steel market.
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