Europe’s largest steelmaker ArcelorMittal Europe has announced the details of how it plans to become carbon neutral by 2050, investing in two key ways in which it will produce steel with zero carbon emissions. The company plans to reduce its carbon emissions by 30 percent by 2030.
The company said the first route to carbon neutrality is Smart Carbon, which involves replacing carbon with circular carbon and 100 percent renewable electricity, while the second route is via direct reduced iron (DRI) which involves shifting from natural gas to hydrogen. The important difference between the two routes is that Smart Carbon can deliver results sooner, through its use of complementary technologies, SteelOrbis understands.
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. “Today, the biggest barrier to transitioning to carbon-neutral steel is the absence of the right market conditions. The financial costs of realizing 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,” ArcelorMittal Europe’s CEO for flat products, Geert Van Poelvoorde, said.