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Our existing DRI plant in Quebec produces 1.7 million tonnes of DRI each year. In 2021 we are testing hydrogen injection in our DRI facility. The test is a “proof of principle” type aiming at building our knowledge about this greenhouse emission abatement technique and exploring its potential and viability beyond theoretical calculations or process modelling. The test will start with a limited injection of 5% within the energy mix and further phases are planned in the future. This is mostly attractive because renewable sources – specifically hydroelectric – provide 99% of Quebec’s energy.
DRI – EAF.
ArcelorMittal France.
Dunkirk: preparing for the transition.
ArcelorMittal is currently studying the implementation of an innovative solution to produce low carbon steel in Dunkirk in partnership with Air Liquide. The project aims to combine a Direct Reduction Plant with arc furnaces to produce 2 Mt/y hot metal which would be a first of a kind. The project includes low carbon hydrogen use and would lead to CO2e savings.
Commissioning is planned for 2025.
This partnership between Air Liquide and ArcelorMittal is a first step towards the creation of an ecosystem at the forefront of low-carbon hydrogen and CO2 capture solutions that will be a source of competitiveness and attractiveness for various players in the Dunkirk industrial and port basin.
ARCELORMITTAL • CLIMATE ACTION REPORT 2 18
There is growing international consensus that clean hydrogen can and should play an important role in the world’s transition to a sustainable energy future. Hydrogen is a versatile energy carrier and is easy to use with many potential applications. These include powering road vehicles and ships, and serving as a primary fuel for steelmaking. Hydrogen – especially green hydrogen – has an important role to play in the future of steelmaking, in both the Innovative DRI and Smart Carbon technology pathways.
Hydrogen can be produced from a range of sources with little to no carbon emissions. Green hydrogen uses solar or wind power to separate the hydrogen from water through electrolysis. Blue hydrogen extracts the hydrogen in natural gas and sequesters the resulting CO2 to minimise emissions. It has the potential to be a game-changer, as our recent announcement in Spain demonstrates, but widespread adoption of clean hydrogen faces significant challenges.
Producing clean hydrogen today is expensive, 2 to 5 times costlier than CO2-emitting hydrogen produced today (grey hydrogen) and cannot compete on its own with other fuels such as natural gas, even when factoring in CO2 costs.
Easy to use as a fuel, manipulating and transporting hydrogen is difficult due to its low density and logistics challenges are a formidable obstacle to widespread hydrogen use. Being one of the lightest gases with low energy density, transporting pure hydrogen long distances requires dedicated piping network, or alternatively hydrogen needs to be liquefied for road or ship transport. Only some of the necessary transport technology is commercially mature today and transporting hydrogen, particularly in liquid form, adds significant additional costs to using hydrogen.
Policymakers, particularly in Europe and Japan, are supporting the development of green hydrogen production, pipeline and liquefaction infrastructure through to 2030 through various forms of public funding. This investment drive in hydrogen, together with further anticipated reductions in solar PV and wind power costs, will have a scale effect that is likely to lead to electrolyser and transport costs for hydrogen coming down significantly.
However, with a high cost starting point, we believe that significant policy support may be needed in many jurisdictions beyond 2030 in both hydrogen production and the necessary transport infrastructure to sustain and expand hydrogen use in the steel industry.
The role of hydrogen.
Photo: © Adobe.
ARCELORMITTAL • CLIMATE ACTION REPORT 2 19
IGAR.
BF-BOF.
Circular carbon (now)
Torero Bioenergy Input of clean energy in the form of bioenergy from circular carbon from end of life plastics and from sustainable biomass.
Use of circular carbon to produce feedstock for biomaterials production.
Bio-ethanol.
Carbalyst End of life recycling.
Recycled carbon materials Chemical industry.
Sustainable biomass.
Clean electricity (post 2030)
Fossil fuels.
Carbon capture and storage.
Capturing, transporting and storing any non-circular carbon sources.
Carbon capture and storage.
Green hydrogen Input of clean energy in the form of hydrogen from clean electricity via electrolysis of water into steelmaking.
Clean electricity generation Electrolysis.
Carbon transport Carbon transport Carbon storage Carbon storage.
Reformer.
Blue hydrogen Input of clean energy in the form of hydrogen via separation and carbon capture and storage of carbon in natural gas.
Section 2 Our decarbonisation strategy 2.3 Our plans: the Smart Carbon route 2.3.1 Decarbonisation projects 2021-2030 2.3.1.2 Announced projects – Smart Carbon.
We are constructing several commercial-scale projects to test and prove a range of Smart Carbon technologies, with key projects coming on-stream from 2022.
Making carbon-neutral steel: the Smart Carbon route.
ARCELORMITTAL • CLIMATE ACTION REPORT 2 20
It can also be from capturing carbon gases produced by the iron and steelmaking process and converting into recyclable products. For example, plastic waste used as energy, for which exhaust carbon gases are turned back into equivalent amount of new plastics. Equivalency in the carbon content of waste plastics used and new plastics produced ensures the process is carbon neutral. This cycle also provides the plastics industry a circularity that it lacks today.
Section 2 Our decarbonisation strategy 2.3 Our plans: the Smart Carbon route 4. Plastics are produced from waste carbon gases, with equivalent waste plastic converted back into energy for steelmaking 3. Equvialent amount of CO2 from atmosphere is absorbed by regrowth of plants 1. Bioenergy is produced from sustainable bio-residues before they decay into C02 2. CO2 from use of bioenergy in steelmaking is released into the atmosphere.
CO2 CO2.
Circular carbon: “Torero” and “Carbalyst”
Circular carbon uses carbon-based energy that does not add carbon to our biosphere. It can be in the form of bioenergy from the natural carbon cycle, such as waste from sustainably-sourced construction wood, agriculture and forestry residues, where regrowth of managed forests and crops will recapture the CO2 emitted from the bioenergy used.
We are developing two key technologies to enable use of circular carbon.
“Torero” is a torrefaction process to make steelspecific renewable energy from waste wood and waste plastic.
“Carbalyst” allows us to use steelmaking waste gases to produce basic chemicals such as bio-ethanol, which are the key building blocks of plastics.
ARCELORMITTAL • CLIMATE ACTION REPORT 2 21
Section 2 Our decarbonisation strategy 2.3 Our plans: the Smart Carbon route.
ArcelorMittal Ghent, Belgium “Torero”: At ArcelorMittal Ghent, we are constructing an industrial-scale demonstration plant that converts waste wood into renewable energy through a process called torrefaction. This source of waste wood is considered hazardous material if burnt in an incinerator as it emits harmful gasses. However, in a blast furnace no such pollutants can be formed. At the Ghent plant, two reactors will each produce 40,000 tonnes of bio-coal annually that can be used in the blast furnace as a substitute for coal. Construction of the €55 million project started in 2018: reactor #1 is expected to start production in 2022 and reactor #2 in 2024.
Expected completion date: 2022 (reactor 1) & 2024 (reactor 2)
Wood waste Drying Torrefaction Grinding Biocoal Substitute for coal.
Torero.
Pulverised biocoal.
Carbon capture and storage Steelmaking.
Circular carbon.
Clean electricity and green hydrogen.
Carbon capture and storage and blue hydrogen.
Carbon capture and storage Steelmaking Carbon capture and storage.
Clean electricity.
Circular carbon.
ARCELORMITTAL • CLIMATE ACTION REPORT 2 22
Section 2 Our decarbonisation strategy 2.3 Our plans: the Smart Carbon route “Carbalyst” is a family of technologies that capture carbon from the steel-making process for use elsewhere, either a biofuel or biochemical for use by the plastics industry.
“Steelanol” uses gas-fermentation technology to transform carbon-rich industrial waste gases into advanced bioethanol for use in the transport sector and to make plastics.
We are in the process of constructing an industrial scale Steelanol demonstration plant in Ghent, Belgium that will capture carbon off-gases from the blast furnace and convert them into bioethanol using microbes. The ~€180 million plant is expected to be completed in 2022 and will produce 80m litres of bioethanol annually.
“CarbHFlex” is a process that uses microbes to produce acetone and isopropanol, both basic chemicals used to make plastics. This project has been shortlisted for IPCEI funding.
Expected completion date: Steelanol 2022.
Carbon capture and storage Steelmaking.
Circular carbon.
From blast furnace off-gases.
Pressure swing absorption Bioreactor Distillation Renewable fuels and chemicals.
Carbalyst.
Carbon capture and storage Steelmaking Carbon capture and storage.
Clean electricity.
Circular carbon.
IGAR.
BF-BOF.
Clean electricity and green hydrogen.
Carbon capture and storage and blue hydrogen.
ARCELORMITTAL • CLIMATE ACTION REPORT 2 23
Section 2 Our decarbonisation strategy 2.3 Our plans: the Smart Carbon route.
IGAR.
Carbon capture and storage Steelmaking.
Circular carbon.
Clean electricity and Blue hydrogen.
Carbon capture and storage and Green hydrogen.
Carbon capture and storage Steelmaking Carbon capture and storage.