b'MARCH 20 - APRIL 16, 2023BREAKBULK QUARTERLY 33Steelmakers continue decarbonization investmentsGreen steel attracts investment. But clean electricity remains the key.By Peter Buxbaum, AJOTIn January, ArcelorMittal, a multinationalis also retrofitting some of its operations, such steel producer headquartered in Luxembourg,astheDofascoplantinHamilton,Ontario, announced that it had invested $36 million inwith a $1.3 billion investment to transition that Boston Metal, helping the green steel companyplant to direct reduced iron-electric arc furnace raise $120 million in a third private investment(DRI-EAF) steelmaking, which will lower its Steel cutting process at a Brazil steel mill. round. The Woburn, Massachusetts-based com- carbonfootprintbyremovingcoalfromthe panypreviouslyraised$50millionin2021ironmaking process. (VACUUMcontinued fromconnection.from investors that included the Brazilian mul- BostonMetalsMOEmethodoffersan page 32) Lastyear,notedAdityatinational mining giant Vale S.A., to scale up itsalternative to low-carbon steel production tech-national steel association AoMittal, ArcelorMittals CEO,molten oxide electrolysis (MOE) technology. niques that use scrap or direct-reduced iron, both Brasil. The U.S. remains Bra- wasovershadowedbytheMOE reduces iron ore with the use of elec- of which have supply limitations. If you have zils largest export market foroutbreak of war in Ukraine,tricity, enabling a steel production process thatscrap available, thats unbeatable, and thats the steel, and, although volumeswherewehavesteelandeliminates CO2 emissions. Its part of an effortbest way to do it, said Tadeu Carneiro, Boston droppedin2022,thattrendmining operations. The con- amongsteelproducersaroundtheworldtoMetals CEO. But the low supply of scrap and may be due for a reversal, ifflict is impacting growth.reduce their carbon footprints for both environ- high-qualityironoreslimitthescalabilityof January2023snumbersareCSP,Mittaladded,ismental and economic reasons. Besides interna- scrap-based and DRI steelmaking.any indication. oneofBrazilslowest-costtional mandates like the Paris Agreement, theScrap-basedsteelmakingaccountedfor Brazilsgrowingimpor- slabproducers,akeyRus- steel industry also faces growing demand forabout 30% of the total global steel production tance in global steel markets issiansteelexport,andovercarbon-friendly steel products and growingin 2021, a proportion expected to reach only highlightedbyanotherrecentthelonger-termthereisinvestor and public interest in sustainability,40% by 2050. Relying on iron to produce steel development. In January 2023,theoptiontosignificantlyaccordingtoaMcKinseyreport.Thesteelrequires access to higher-grade ores, which are Brazilianantitrustauthoritiesincrease its slab capacity. Inindustry is among the biggest industrial pro- not in abundant supply; MOE, by contrast, can approvedtheacquisitionofother words, the CSP acqui- ducers of carbon dioxide globally, accountinguse lower-quality iron ore for steelmaking.the Brazilian steelmaker Com- sition provides ArcelorMittalfor about 8% of emissions.Since MOE uses electricity to manufacture panhiaSiderrgicadoPecmwith the opportunity to miti- steel, access to clean electricity is essential to (CSP) by ArcelorMittal, a mul- gatelossesinUkraineandxc arbi NNovatioNF uNd eliminating CO2 emissions from the process. tinational steel producer head- capitalize on shrinking Rus- ArcelorMittalsXCarbInnovationFund,The transportation, building, and infrastructure quartered in Luxembourg, forsian steel slab sales. launched in March 2021, targets technologiessectors are all moving in that direction, noted $2.2 billion. There are severalAnother factor to considerthat could play a role in decarbonization. TheCarneiro.Quebec,Scandinavia,Australia, rationalesbehindtheacquisi- (VACUUMcontinued onBoston Metal transaction is the funds largestand Brazil, he added, are among the regions tion, including a Ukraine warpage 34) single initial investment to date. ArcelorMittal(INVESTMENTScontinued on page 37)'