US-based Boston Metal announced the conclusion of a round of funding negotiations totaling $262 million, which will be used in the development of the company’s plants in Brazil. The company said it expects to confirm the viability of its neutral carbon emission steel production goals.
According to the company, the new investors include Aramco Ventures, the global investment manager M&G Investments, the natural resources investment company Goehring & Rozencwajg and the investment management firm Baillie Gifford, among others.
The company is also investing the equivalent to $116 million in a green steel plant in Coronel Xavier Chaves, in the Brazilian southeastern state of Minas Gerais, with a capacity to produce 10,000 mt per year, starting in 2024.
Boston Metal claims that its steelmaking technology, Molten Oxide Electrolysis (MOE), can produce steel from abundant medium and low-grade iron ores, while many green steel technologies today depend on scarce high-grade products to operate. It added that the MOE process is based on electricity from renewable sources, allowing for the elimination of scopes 1 and 2 emissions of the steelmaking process, currently responding for 10 percent of global carbon dioxide emissions.