New DRI and EAF installations at ArcelorMittal Dofasco
in Hamilton, Ontario will reduce carbon emissions by approximately
60%
30 July 2021,
16:00
CET
ArcelorMittal (the ‘Company’) has today
announced with the Government of Canada its intention for a
CAD$1.765 billion investment in decarbonization technologies at
ArcelorMittal Dofasco’s plant in Hamilton. The intended investments
will reduce annual CO2 emissions at ArcelorMittal’s Hamilton,
Ontario operations by approximately 3 million tonnes, which
represents approximately 60% of emissions, within the next seven
years. This means the Hamilton plant will transition away from the
blast furnace-basic oxygen furnace steelmaking production route to
the Direct Reduced Iron (DRI) – Electric Arc Furnace (EAF)
production route, which carries a significantly lower carbon
footprint.
ArcelorMittal will introduce new manufacturing
processes that contribute to a considerable reduction of
CO2 emissions and deliver other positive environmental impacts
including the elimination of emissions and flaring from coke making
and ironmaking operations.
The investment is contingent on support from the
governments of Canada and Ontario. Today the Government of Canada
announced it will invest CAD$400 million in the project. The
Company is in discussions with the Government of Ontario regarding
its support.
The announcement was made at an event in
ArcelorMittal Dofasco’s plant in Hamilton, which was attended by
ArcelorMittal CEO Aditya Mittal, ArcelorMittal Dofasco President
and CEO Ron Bedard, Canada’s Deputy Prime Minister Chrystia
Freeland, Minister of Innovation, Science and Industry
François-Philippe Champagne and Minister of Labour Filomena
Tassi.
At the heart of the plan is a 2 million tonne
capacity DRI facility and an EAF facility capable of producing 2.4
million tonnes of high-quality steel through its existing secondary
metallurgy and secondary casting facilities. Modification of the
existing EAF facility and continuous casters will also be
undertaken to align productivity, quality and energy capabilities
between all assets in the new footprint.
The new DRI and EAF will be in production before
the end of 2028.
This project contributes to the sustainability
of well-paying skilled positions in advanced manufacturing and is
also expected to support as many as 2,500 jobs during the
engineering and construction phases. It will also support
ArcelorMittal Dofasco’s customers decarbonization ambitions while
further enhancing ArcelorMittal Dofasco’s capability to support the
most demanding product segments including automotive exposed,
advanced high strength steels, and consumer packing.
This new production route for ArcelorMittal
Dofasco will provide a technically advanced manufacturing
environment for operations, maintenance, and technology staff to
work in, with improved health and safety. New positions, training,
and development will be provided for employees moving from existing
business units to new assets, with approximately 160,000 training
hours required to transition our workforce to the new
footprint.
Expressing Canada’s support for the
plan, Deputy and Minister of Finance
Chrystia Freeland said:
“Our government has been steadfast in defending
and championing our steel workers. Today’s announcement, through
the Net Zero Accelerator, is about investing in the low-carbon
transformation of Canadian industry, taking serious action in the
global fight against climate change, and supporting good
middle-class jobs in Hamilton. We will continue to be there to
support growth and a strong economic future for our steel workers
and the broader Hamilton community.”
François-Philippe Champagne, Minister of
Innovation, Science and Industry,
said:
“We are supporting our steel workers and
companies like ArcelorMittal Dofasco as they seize today’s
opportunities in the low-carbon economy and they do their part in
the fight against climate change. This investment will ensure that
Canada’s largest producer of flat-rolled steel adopts innovative
technologies, continues to provide economic opportunities for
Canadian workers, and contributes meaningfully toward our climate
targets. This investment will create good jobs in communities like
Hamilton and clean Canadian-made products for the world for decades
to come.”
Filomena
Tassi, Minister of Labour,
added:
“This $400 million investment by our government
in reducing greenhouse gas emissions at ArcelorMittal Dofasco will
transform Hamilton. It will position ArcelorMittal Dofasco to
become a world leader in the development of advanced steels and
make a significant contribution to achieving Canada’s carbon
pollution reduction targets. We are proud to work with
organizations like ArcelorMittal Dofasco that are committed to
building a stronger, more competitive economy by innovating to
fight climate change and creating 2,500 new jobs.”
Speaking at the announcement in
Hamilton, Aditya Mittal, CEO ArcelorMittal, said:
“The plans we have announced today represent a
historic moment for ArcelorMittal in Canada and North America,
marking the beginning of a new era of steelmaking in Hamilton, that
will result in a 60% drop in CO2 emissions within the next seven
years. We are very pleased to be in partnership with the Government
of Canada - as partners, we all recognize that it is vital to
accelerate our carbon emissions reduction and strengthen our
climate action. Indeed progress in the next decade is vital if the
world is to reach net zero by 2050.
“This project is part of ArcelorMittal’s new
global 25% CO2 2030 emissions reduction target which was announced
yesterday in our second climate action report. DRI-EAF technology,
such as that being introduced in Dofasco, is at the heart of our
new target although we do also continue to develop our smart carbon
technology route. Transitioning from the blast furnace route to the
DRI-route, offers an immediate significant reduction in emissions
in the first phase through natural gas and then in a second phase,
which we call innovative DRI, harnessing green hydrogen or other
Smart Carbon technologies.
“This is the first significant decarbonization
project we have announced outside Europe and again reflects
ArcelorMittal’s determination to lead the decarbonization of the
steel industry. Across the company our people are highly motivated
to demonstrate that steel can reach net zero and will be the core
material for a carbon-neutral world. This project in Dofasco is a
very significant and important milestone in this journey.”
Highlighting the transformative impact
of the announcement, ArcelorMittal Dofasco President and CEO Ron
Bedard said:
“The Government of Canada’s investment
accelerates the realization of low carbon steelmaking in Canada.
This significant total investment in Hamilton will transform our
organization and deliver exceptional benefits to all our
stakeholders including our customers, our employees and the
community.
“The new steelmaking footprint will improve our
capability to support the most demanding product segments with
advanced high strength steels, including those used for the
emerging electric vehicles in the automotive sector. The new
steelmaking stream also sustains well-paying skilled positions in
advanced manufacturing in Ontario, with the opportunity for our
highly skilled employees to work in the most technically advanced
Steelmaking assets in North America. The company’s bayfront
property has been re-imagined and we are well on the way to a
significant and broad reduction in environmental impacts,
contributing to the health and sustainability of our community, the
environment and the economy.”
ArcelorMittal has an ambition to be net zero by
2050. Yesterday the Company published its second group Climate
Action Report in which it set a new 2030 global carbon emissions
intensity reduction target of 25%. It has also increased its
European 2030 carbon emissions intensity target to 35%, from 30%.
ArcelorMittal estimates the cost of achieving its global 2030
carbon reduction target is c. US$10 billion and believes government
funding support of approximately 50% is required to enable the
Company to remain competitive regionally and globally through the
transition period given the capital investment required and higher
operating costs of low-carbon steelmaking technologies. The Company
has developed two technology pathways, Smart Carbon and Innovative
DRI, both of which it believes will have an important role to play
in helping the Company achieve net zero by 2050.
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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