A memorandum of understanding (MoU) signed on 13 July 2021 between ArcelorMittal and the Spanish government demonstrates mutual intent to work together towards a decarbonised Spanish economy – a necessity for industries such as steel to successfully transition to carbon neutrality. As a result, new manufacturing processes at ArcelorMittal’s Spanish operations will include a new direct reduced iron (DRI) unit and electric arc furnace (EAF) installation in Gijón that will reduce carbon emissions at ArcelorMittal’s Spanish operations by approximately 50%. The DRI installation in Gijón will also enable ArcelorMittal Sestao to become the world’s first full-scale zero carbon emissions* steel plant.

ArcelorMittal signs MoU with the Spanish Government supporting €1 billion investment in decarbonisation technologies

The MoU signed with the Spanish Government will see a €1 billion investment in decarbonisation technologies at ArcelorMittal Asturias’ plant in Gijón. The investments will reduce CO2 emissions at ArcelorMittal’s Spanish operations by up to 4.8 million tonnes, which represents approximately 50% of emissions, within the next five years**.

At the heart of the plan is a 2.3 million-tonne green hydrogen DRI unit, complemented by a 1.1 million-tonne hybrid EAF. This starts the transition of the Gijón plant away from the blast furnace-basic oxygen furnace steelmaking production route to the DRI-EAF production route, which carries a significantly lower carbon footprint. The new DRI - which will be the first of its kind in Spain - and EAF will be in production before the end of 2025, with construction anticipated to begin in 2022.

Expressing support for the plan, Spain’s Minister of Industry María Reyes Maroto stated that “the Government of Spain and the ArcelorMittal Group fully agree that the transition towards a decarbonised economy is an essential objective for Spain, and they both recognise the industrial, technological, and regulatory challenges that this transition poses for Spanish industry, as well as the opportunities it offers in terms of innovation and improved competitiveness.”

ArcelorMittal Sestao to become the world's first full-scale zero carbon emissions steel plant

Harnessing green hydrogen and renewable electricity, ArcelorMittal’s Sestao plant will become the world’s first full-scale zero carbon emissions* steel plant by 2025. This development is the result of the MoU that will see the construction of the green hydrogen DRI plant in Gijón. The Gijón DRI will feed the company’s Sestao plant, situated approximately 250km from Gijón, where production is already entirely from the EAF route.

By 2025, the Sestao plant – which manufactures a range of flat steel products for the construction sectors (among others) - 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.

Speaking at the signing of the MoU in Gijón, Aditya Mittal, CEO ArcelorMittal, said that “it is widely understood that for the world to achieve net zero by 2050, faster progress over the next decade is essential. The MoU we have signed today will play an important role in doing exactly that.  The construction of the new green hydrogen DRI plant in Gijón will not only enable us to reduce emissions from our Spanish operations by half but will also result in the world’s first full-scale zero carbon emissions steel plant in Sestao.”

Looking further ahead, ArcelorMittal has also committed to achieving net zero*** at the Sestao plant as soon as possible.

Text:
ArcelorMittal Europe Communications
Constructalia

Images and video:
ArcelorMittal

*On a Scope 1 and 2 basis.
**Should green hydrogen not be available at affordable rates by the end of 2025, natural gas would be used to power the DRI furnace. This would still result in a very significant reduction in CO2 emissions of 4 million tonnes - approximately 45%.
***Net zero meaning across Scopes 1, 2, and 3.

Initial $10 million investment part of broader partnership established with Heliogen

ArcelorMittal recently announced the completion of its first XCarb™ innovation fund investment since launching the initiative in March 2021. The company has invested an initial $10 million in Heliogen, a renewable energy technology company which focusses on ‘unlocking the power of sunlight to replace fossil fuels.’

Fields of mirrors that concentrate and capture sunlight to produce heat, electricity, and clean fuels to help the steel industry’s transition to carbon-neutrality

Heliogen’s technology will harness solar energy by using a field of mirrors which will act as a multi-acre magnifying glass to concentrate and capture sunlight. The sunlight will subsequently be converted into heat (HelioHeat™), electricity (HelioPower™), or clean fuels (HelioFuel™).

All three Heliogen products have the potential to be applicable to the steelmaking process and support the steel industry’s transition to carbon-neutrality. HelioHeat™, for example, could be used to increase the temperature of air blown into a blast furnace, offsetting the use of fossil fuel. The Heliogen technology will also be capable of creating 100 per cent green hydrogen, which Heliogen is working to develop as its first HelioFuel™. Hydrogen sits at the heart of ArcelorMittal’s innovative-DRI technology pathway, which involves using hydrogen instead of natural gas as the reductant in the production of direct reduced iron.

In addition to the $10 million investment, ArcelorMittal and Heliogen have signed a Memorandum of Understanding which aims to evaluate the potential of Heliogen’s products in several of ArcelorMittal’s steel plants.

A promising partnership: breakthrough technologies to reach carbon neutrality

Commenting, Pinakin Chaubal, Chief Technology Officer, ArcelorMittal, said:

“Developing and deploying breakthrough technologies is at the heart of our climate action strategy. While our own efforts are progressing well, the objective of our XCarb™ Innovation fund is to extend our reach and support companies developing technologies which could assist us on our decarbonisation journey. The technology Heliogen is developing has the potential to do exactly that.

Moreover, the partnership we have established with Heliogen goes beyond investment. The MoU we have signed means we are actively exploring working with them to deploy their technologies in our steel plants, enhancing our ongoing programme of decarbonisation initiatives. Establishing partnerships of this kind has an important role to play in ensuring we succeed in our ambition to lead our industry’s efforts to decarbonise and reach carbon-neutrality by 2050.”

Bill Gross, CEO and Founder, Heliogen, added:

“The future of our planet and civilisation hinges on the global economy’s ability to shift from its reliance on fossil fuels to clean, renewable energy. We founded Heliogen to eliminate the need for fossil fuels in all sectors of the economy and to empower a sustainable future. We’re thrilled to welcome ArcelorMittal as an investor in the company.

We’re also excited to begin working with ArcelorMittal to explore how our technology can support its significant decarbonisation efforts. Heliogen’s Sunlight Refinery™, which will cost-effectively deliver 24/7 carbon-free energy in the form of heat, electricity, or hydrogen fuels at scale for the first time in history, was designed for use by a spectrum of industries, including steel. Together, ArcelorMittal and Heliogen can meaningfully help the world achieve carbon neutrality.”

Text:
ArcelorMittal Corporate Communications
Constructalia

Image:
ArcelorMittal