Steel producer ArcelorMittal’s $10 billion climate plan

Steel giant ArcelorMittal has announced plans to reduce carbon emissions. By a quarter by 2030, compared to 2018 levels. Investments of $10 billion are planned over the next decade to support the transition from fossil fuels to greener production technologies and clean energy sources.

The company published its latest financial results on July 29. And it announced a series of new medium-term climate commitments. These commitments follow the company’s announcement last year that it intends to aim for net-zero emissions by 2050.

The global steel sector is a major emitter of greenhouse gases. And therefore, it is under increased pressure in terms of decarbonization. But phasing out fossil fuel blast furnaces is seen as a major and costly challenge for the industry.

Steel giant ArcelorMittal – low-carbon steel

However, ArcelorMittal said it expects the sector to undergo a major transformation in the coming years. Over time, low-carbon steelmaking technologies are becoming more competitive than traditional high-carbon production. But he stressed that accelerating this transition required a combination of political support with private sector investment.

As such, it has unveiled a new climate action report. Which sets out a vision focused on shifting to greater use of scrap metal recycling and the use of renewable energy sources. As well as clean technologies such as hydrogen and carbon capture.

„ArcelorMittal has worked hard to be at the forefront of our sector in this transition to zero emissions. Because we believe that this will not only help decarbonize the global economy. It will also generate opportunities in several aspects of our business,” said Aditya Mittal.

The company announced that its new $10 billion investment program will help the firm meet its climate goals. With 35% of the respective budget allocated for 2025.

The world’s first zero-carbon steel plant

ArcelorMittal aims to transform the Sestao operation in Spain into „the world’s first zero-carbon steel plant” by 2025. Which he said would halve the company’s total emissions in Spain.

The project is seen as a precursor to the transformation of other steel plants across Europe to run on hydrogen technologies. Additional investments are expected in the coming decades at the plants in Gijon, Bremen, Dunkirk, Eisenhuttenstadt and Quebec.

Other elements that are an integral part of the company’s decarbonization plans include the use of catchment. Also, carbon storage, the supply of more green electricity. And offsetting residual emissions where there is no „feasible technological solution” to reach net zero.

Emphasizing how much innovations and additional investments matter in the steel industry. ArcelorMittal said its new targets were based on a number of assumptions. These are about how the global economy will change in the coming years.

Article source: https://www.greenbiz.com/article/steelmaker-arcelormittals-10-billion-climate-plan