ArcelorMittal Europe sets out path to
net zero by 2050, with pioneering technologies at the forefront of
the company’s roadmap for carbon-neutral steelmaking
1100 CET, 25 June 2020
- Europe’s largest steelmaker, unveils breakthrough
technologies that will take the company to 30% lower CO2 emissions
by 2030, and carbon neutrality by 2050
- ArcelorMittal Europe is investing in two routes to
carbon neutrality, Smart Carbon and an innovative DRI-based route,
in recognition of the need to act now to reduce CO2 emissions, in
line with the EU’s Green Deal and the Paris
Agreement
- Calls for new policy framework, to support the industry
in its transition to carbon neutrality, naming five market
conditions that are needed for Europe’s steelmakers to compete
globally
ArcelorMittal Europe has announced details of how it plans to
become carbon neutral by 2050 in its first climate action report,
published today. Building on the company’s work that has
demonstrated that the steelmaking process can become carbon
neutral, the report publishes details of the ground-breaking work
underway to reduce emissions by 30% by 2030 before reaching net
zero in 2050.
The company is pioneering two breakthrough carbon-neutral routes
for steelmaking: Smart Carbon, and an innovative DRI-based
route.
Smart Carbon is a carbon-neutral steelmaking route that
leverages all clean energies – circular carbon, clean electricity
and carbon capture and storage (CCS) - within the high
temperature-controlled reduction environment of ironmaking. In its
first phase, Smart Carbon will primarily use circular carbon.
Reaching carbon-neutral steelmaking via DRI involves moving from
using predominantly natural gas, to hydrogen as the key reductant
in ironmaking. As this hydrogen becomes ‘green’, the steelmaking
process comes close to carbon neutrality.
While both the Smart Carbon route and the DRI-based route have
the potential to deliver carbon -neutral steel by 2050, the
important difference between the two routes is that Smart Carbon
can deliver results sooner, through its use of complementary
technologies which enable incremental progress. Uniquely,
Smart Carbon has the potential not only to provide carbon-neutral
steel, but also carbon-neutral cement, and the building blocks to
make recycled carbon materials to replace polyethylene-based
plastics. Smart Carbon can also contribute to CO2
removal, through the increased use of circular carbon, using
sustainable biomass and waste, combined with scaling up CCS.
By investing in both routes – and in recognition of the need to
act now to combat climate change - this means ArcelorMittal Europe
can significantly reduce scope 1 CO2 emissions* –
which include all process emissions - by 2030 over a 2018 baseline,
while waiting for the large-scale, affordable renewable energy
needed for hydrogen-based steelmaking.
ArcelorMittal Europe’s 2030 target therefore combines Smart
Carbon technologies and increased scrap usage, specifically by
developing new ways to increase the use of low-quality scrap metal
– which is hard to recycle - in the primary steel production
process.
In the longer-term, both routes have the potential to leverage
all three clean energies to achieve carbon neutrality, namely:
- clean electricity (generated by sources such as solar and
wind),
- circular carbon (making use of biowaste materials, such as
sustainable forestry and agriculture residues, to produce
bioenergy)
- carbon capture and storage (capturing CO2 before it is emitted,
transporting it and storing it safely underground).
Commenting on the report, Aditya Mittal, President and CFO,
ArcelorMittal, and CEO ArcelorMittal Europe, said:
“Climate change is one of the greatest challenges facing us all.
Understandably, much attention is currently focussed on
navigating the unexpected and unprecedented outbreak of
Covid-19. However, climate change remains a huge long-term
challenge that will require diligent attention and progress for
decades to come. And like Covid-19, it is not something that one
country or one company can solve alone. Carbon emissions also know
no border, so it will take a global effort, with all nations and
companies playing their part.
“ArcelorMittal Europe is doing a lot of work to develop a path
to net zero. The technologies we are working on have the potential
to make a big impact. Indeed, steel should and can play a leading
role in achieving the vision for Europe as outlined in the Green
Deal. Our research and development team are one of the
best in the industry and relish solving complex problems. But it
needs a team effort. The support the EU and member states can
give to ensure we have well-designed policy to make large-scale,
competitive, carbon-neutral steelmaking a reality, is
critical.”
ArcelorMittal Europe has industrial-scale demonstration projects
under construction for every part of its carbon-neutral roadmap.
The company is building industrial-scale demonstration plants at
its operations in Belgium (Carbalyst® and Torero), France (3D and
IGAR in Dunkirk). In Hamburg, Germany, we are in the design and
funding phase prior to the investment decision, of an
industrial-scale project to use hydrogen instead of natural gas in
the direct reduction of iron ore (DRI). These demonstration plants
will allow the company to scale-up technologies that will be used
in the Smart Carbon and DRI-based routes. The progress made has
also been possible thanks to financial support from EU member
states and European Union funding. ArcelorMittal Europe is now in
the process of applying for funding for a further six
projects.
While some of the technologies that feature in ArcelorMittal
Europe’s roadmap will be ready for commercial-scale use by 2025,
and by 2030 many of the Smart Carbon technologies can be mature and
partially deployed across our facilities in Europe, the report also
highlights the need for the right policy framework to enable
European steelmaking to contribute to the EU’s climate targets,
particularly given the costs involved. In total, the
estimated investment needed for ArcelorMittal Europe to fully
implement Smart Carbon is €15-25bn and €30-40bn for the DRI-based
route. An additional €15–200bn would be required for the
associated clean energy infrastructure (see report for more
detail).
Geert Van Poelvoorde, CEO ArcelorMittal Europe – Flat Products,
explained:
“I am proud of the work that has brought us this far in our
efforts to create Europe’s first and largest carbon-neutral
steelmaker. Our progress would not have been possible without the
many partners we have on our Smart Carbon and innovative DRI
projects. Today, the biggest barrier to transitioning to
carbon-neutral steel, beyond the necessary technologies reaching
commercial maturity, is the absence of the right market conditions.
The financial costs of realising carbon-neutral steelmaking are
undeniably huge. However, with a shift in market conditions brought
about by having the right policies in place, European steelmakers
will be able to unlock the means to reduce emissions from steel
globally, while also ensuring the European steel industry remains
competitive.”
The medium-term market conditions needed include:
1. Creating an environment where carbon-neutral steel is more
competitive than steel which is not carbon neutral
2. A fair competitive landscape that accounts for the global
nature of the steel market, addressing domestic, import and export
steel dynamics, as well as the distinction between primary and
secondary sources to make steel.
3. Access to sustainable finance, to innovate and make long-term
investments.
4. Access to abundant, affordable clean energy: the scale of the
steel industry’s energy needs are such that concerted cross-sector
and government efforts will be required to develop the necessary
clean energy infrastructure.
5. Public instruments to accelerate innovative technology
deployment to transition to carbon neutral steelmaking.
The report also reiterates the company’s position that a Carbon
Border Adjustment should be introduced in the European Union, which
would ensure that EU-produced steel and imported steel tonnes in
direct competition would have an equal carbon cost, creating a fair
market and, crucially, encouraging investment in lower-emissions
steel production.
ArcelorMittal Europe announced its target to reduce
CO2 emissions by 30% by 2030, in December 2019,
and its ambition to be carbon neutral by 2050, in June 2019.
The ArcelorMittal group will publish its 2030 target later this
year.
Ends
*ArcelorMittal Europe 30% CO2 reduction target includes:
ArcelorMittal Europe – Flat Products, ArcelorMittal Europe – Long
Products, and Industeel
To read the report and view a short film about our roadmap,
visit
https://corporate.arcelormittal.com/sustainability/climate-action-in-europe
To view our Carbon Border Adjustment animation, ‘Creating a
low-carbon world, the case for a Carbon Border Adjustment’ visit
https://www.youtube.com/watch?v=T-iJeVoa7w0
Ends
About ArcelorMittal
ArcelorMittal is the world's leading steel and
mining company, with a presence in 60 countries and an industrial
footprint in 18 countries. Guided by a philosophy to produce safe,
sustainable steel, we are the leading supplier of quality steel in
the major global steel markets including automotive, construction,
household appliances and packaging, with world-class research and
development and outstanding distribution networks.
Through our core values of sustainability,
quality and leadership, we operate responsibly with respect to the
health, safety and wellbeing of our employees, contractors and the
communities in which we operate.
For us, steel is the fabric of life, as it is at
the heart of the modern world from railways to cars and washing
machines. We are actively researching and producing steel-based
technologies and solutions that make many of the products and
components people use in their everyday lives more energy
efficient.
We are one of the world’s five largest producers
of iron ore and metallurgical coal. With a geographically
diversified portfolio of iron ore and coal assets, we are
strategically positioned to serve our network of steel plants and
the external global market. While our steel operations are
important customers, our supply to the external market is
increasing as we grow.
In 2019, ArcelorMittal had revenues of $70.6
billion and crude steel production of 89.8 million metric tonnes,
while own iron ore production reached 57.1 million metric
tonnes.
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/
|
|
Contact information ArcelorMittal Investor
Relations |
|
|
|
Europe |
+44 20 7543 1156 |
Americas |
+1 312 899 3985 |
Retail |
+44 20 7543 1156 |
SRI |
+44 207543 1156 |
Bonds/Credit |
+33 171 921 026 |
|
|
|
|
Contact information ArcelorMittal Corporate
Communications |
|
E-mail: |
press@arcelormittal.com |
Phone: |
+442076297988 |
|
|
|
|
ArcelorMittal
Communications |
|
Sophie Evans |
+44 203 214 2882 / +44 7825 595849 |
Paul WeighDan White |
+44 20 3214 2419+44 7468354695 |
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Ends
About ArcelorMittal
ArcelorMittal is the world's leading steel and
mining company, with a presence in 60 countries and an industrial
footprint in 18 countries. Guided by a philosophy to produce safe,
sustainable steel, we are the leading supplier of quality steel in
the major global steel markets including automotive, construction,
household appliances and packaging, with world-class research and
development and outstanding distribution networks.
Through our core values of sustainability,
quality and leadership, we operate responsibly with respect to the
health, safety and wellbeing of our employees, contractors and the
communities in which we operate.
For us, steel is the fabric of life, as it is at
the heart of the modern world from railways to cars and washing
machines. We are actively researching and producing steel-based
technologies and solutions that make many of the products and
components people use in their everyday lives more energy
efficient.
We are one of the world’s five largest producers
of iron ore and metallurgical coal. With a geographically
diversified portfolio of iron ore and coal assets, we are
strategically positioned to serve our network of steel plants and
the external global market. While our steel operations are
important customers, our supply to the external market is
increasing as we grow.
In 2019, ArcelorMittal had revenues of $70.6
billion and crude steel production of 89.8 million metric tonnes,
while own iron ore production reached 57.1 million metric
tonnes.
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/
|
|
Contact information ArcelorMittal Investor
Relations |
|
|
|
Europe |
+44 20 7543 1156 |
Americas |
+1 312 899 3985 |
Retail |
+44 20 7543 1156 |
SRI |
+44 207543 1156 |
Bonds/Credit |
+33 171 921 026 |
|
|
|
|
Contact information ArcelorMittal Corporate
Communications |
|
E-mail: |
press@arcelormittal.com |
Phone: |
+442076297988 |
|
|
|
|
ArcelorMittal
Communications |
|
Sophie Evans |
+44 203 214 2882 |
Paul WeighDan White |
+44 20 3214 2419+44 7468354695 |
|
|
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