The Brazilian subsidiary of Luxembourg-headquartered stainless steel producer, Aperam, has secured a loan estimated at $270 million to enhance its charcoal production operations in Brazil.
The charcoal, sourced from the company’s plantation forests in Minas Gerais state, serves as a substitute for coke in blast furnaces and achieves “close to zero” net CO2 emissions. This is accomplished by compensating the emissions generated during steel production through the capture of CO2 via the growth of subsequent generations of trees.
According to Timoteo Di Maulo, the company's director, "We promote the sector with innovative and responsible solutions that not only reduce our carbon footprint but also enhance circular economy practices."
The financial resources provided by the World Bank and the IG bank will be allocated towards expanding the company’s plantation forest area, currently 90,000 hectares, and upgrading the technology in its charcoal furnaces to cleaner and more efficient units.
Additionally, the funds will support the large-scale production of biological oil obtained from charcoal production residues. This oil will replace synthetic fuels, further diminishing emissions generation.