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press release
ArcelorMittal Europe sets out path to net zero by 2050, with
pioneering technologies at the forefront of the company’s roadmap
for carbon-neutral steelmaking
1200 CET, 25 June 2020
•
Europe’s largest steelmaker, unveils breakthrough technologies that will take the
company to 30% lower CO2 emissions by 2030, and carbon neutrality by 2050
•
ArcelorMittal Europe is investing in two routes to carbon neutrality, Smart Carbon and an
innovative DRI-based route, in recognition of the need to act now to reduce CO2
emissions, in line with the EU’s Green Deal and the Paris Agreement
•
Calls for new policy framework, to support the industry in its transition to carbon
neutrality, naming five market conditions that are needed for Europe’s steelmakers to
compete globally
ArcelorMittal Europe has announced details of how it plans to become carbon neutral by 2050 in its first
climate action report, published today. Building on the company’s work that has demonstrated that the
steelmaking process can become carbon neutral, the report publishes details of the ground-breaking
work underway to reduce emissions by 30% by 2030 before reaching net zero in 2050.
The company is pioneering two breakthrough carbon-neutral routes for steelmaking: Smart Carbon, and
an innovative DRI-based route.
Smart Carbon is a carbon-neutral steelmaking route that leverages all clean energies – circular carbon,
clean electricity and carbon capture and storage (CCS) - within the high temperature-controlled
reduction environment of ironmaking. In its first phase, Smart Carbon will primarily use circular carbon.
Reaching carbon-neutral steelmaking via DRI involves moving from using predominantly natural gas, to
hydrogen as the key reductant in ironmaking. As this hydrogen becomes ‘green’, the steelmaking
process comes close to carbon neutrality.
While both the Smart Carbon route and the DRI-based route have the potential to deliver carbon -
neutral steel by 2050, the important difference between the two routes is that Smart Carbon can deliver
results sooner, through its use of complementary technologies which enable incremental progress.
Uniquely, Smart Carbon has the potential not only to provide carbon-neutral steel, but also carbon-
neutral cement, and the building blocks to make recycled carbon materials to replace polyethylene-
based plastics. Smart Carbon can also contribute to CO
2 removal, through the increased use of circular
carbon, using sustainable biomass and waste, combined with scaling up CCS.
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By investing in both routes – and in recognition of the need to act now to combat climate change - this
means ArcelorMittal Europe can significantly reduce scope 1 CO
2 emissions* – which include all
process emissions - by 2030 over a 2018 baseline, while waiting for the large-scale, affordable
renewable energy needed for hydrogen-based steelmaking.
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.
In the longer-term, both routes have the potential to leverage all three clean energies to achieve carbon
neutrality, namely:
• clean electricity (generated by sources such as solar and wind),
• circular carbon (making use of biowaste materials, such as sustainable forestry and agriculture
residues, to produce bioenergy)
• carbon capture and storage (capturing CO2 before it is emitted, transporting it and storing it
safely underground).
Commenting on the report, Aditya Mittal, President and CFO, ArcelorMittal, and CEO ArcelorMittal
Europe, said:
“Climate change is one of the greatest challenges facing us all. Understandably, much attention is
currently focussed on navigating the unexpected and unprecedented outbreak of Covid-19. However,
climate change remains a huge long-term challenge that will require diligent attention and progress for
decades to come. And like Covid-19, it is not something that one country or one company can solve
alone. Carbon emissions also know no border, so it will take a global effort, with all nations and
companies playing their part.
“ArcelorMittal Europe is doing a lot of work to develop a path to net zero. The technologies we are
working on have the potential to make a big impact. Indeed, steel should and can play a leading role in
achieving the vision for Europe as outlined in the Green Deal. Our research and development team are
one of the best in the industry and relish solving complex problems. But it needs a team effort. The
support the EU and member states can give to ensure we have well-designed policy to make large-
scale, competitive, carbon-neutral steelmaking a reality, is critical.”
ArcelorMittal Europe has industrial-scale demonstration projects under construction for every part of its
carbon-neutral roadmap. The company is building industrial-scale demonstration plants at its operations
in Belgium (Carbalyst® and Torero), France (3D and IGAR in Dunkirk). In Hamburg, Germany, we are
in the design and funding phase prior to the investment decision, of an industrial-scale project to use
hydrogen instead of natural gas in the direct reduction of iron ore (DRI). These demonstration plants will
allow the company to scale-up technologies that will be used in the Smart Carbon and DRI-based
routes. The progress made has also been possible thanks to financial support from EU member states
and European Union funding. ArcelorMittal Europe is now in the process of applying for funding for a
further six projects.
While some of the technologies that feature in ArcelorMittal Europe’s roadmap wil be ready for
commercial-scale use by 2025, and by 2030 many of the Smart Carbon technologies can be mature
and partially deployed across our facilities in Europe, the report also highlights the need for the right
policy framework to enable European steelmaking to contribute to the EU’s climate targets, particularly
given the costs involved. In total, the estimated investment needed for ArcelorMittal Europe to fully
implement Smart Carbon is €15-25bn and €30-40bn for the DRI-based route. An additional €15–200bn
would be required for the associated clean energy infrastructure (see report for more detail).
Geert Van Poelvoorde, CEO ArcelorMittal Europe – Flat Products, explained:
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“I am proud of the work that has brought us this far in our efforts to create Europe’s first and largest
carbon-neutral steelmaker. Our progress would not have been possible without the many partners we
have on our Smart Carbon and innovative DRI projects. Today, the biggest barrier to transitioning to
carbon-neutral steel, beyond the necessary technologies reaching commercial maturity, is the absence
of the right market conditions. The financial costs of realising 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.”
The medium-term market conditions needed include:
1. Creating an environment where carbon-neutral steel is more competitive than steel which is not
carbon neutral
2. A fair competitive landscape that accounts for the global nature of the steel market, addressing
domestic, import and export steel dynamics, as well as the distinction between primary and secondary
sources to make steel.
3. Access to sustainable finance, to innovate and make long-term investments.
4. Access to abundant, affordable clean energy: the scale of the steel industry’s energy needs are such
that concerted cross-sector and government efforts will be required to develop the necessary clean
energy infrastructure.
5. Public instruments to accelerate innovative technology deployment to transition to carbon neutral
steelmaking.
The report also reiterates the company’s position that a Carbon Border Adjustment should be
introduced in the European Union, which would ensure that EU-produced steel and imported steel
tonnes in direct competition would have an equal carbon cost, creating a fair market and, crucially,
encouraging investment in lower-emissions steel production.
ArcelorMittal Europe announced its target to reduce
CO
2 emissions by 30% by 2030, in December
2019, and its ambition to be carbon neutral by 2050, in June 2019.
The ArcelorMittal group will publish its 2030 target later this year.
Ends
*ArcelorMittal Europe 30% CO2 reduction target includes: ArcelorMittal Europe – Flat Products,
ArcelorMittal Europe – Long Products, and Industeel
To read the report and view a short film about our roadmap, visit
https://corporate.arcelormittal.com/sustainability/climate-action-in-europe
To view our Carbon Border Adjustment animation, ‘Creating a low-carbon world, the case for a Carbon
Border Adjustment’ visit
https://www.youtube.com/watch?v=T-iJeVoa7w0
Ends
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About ArcelorMittal
ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries and an
industrial footprint in 18 countries. Guided by a philosophy to produce safe, sustainable steel, we are
the leading supplier of quality steel in the major global steel markets including automotive, construction,
household appliances and packaging, with world-class research and development and outstanding
distribution networks.
Through our core values of sustainability, quality and leadership, we operate responsibly with respect to
the health, safety and wellbeing of our employees, contractors and the communities in which we
operate.
For us, steel is the fabric of life, as it is at the heart of the modern world from railways to cars and
washing machines. We are actively researching and producing steel-based technologies and solutions
that make many of the products and components people use in their everyday lives more energy
efficient.
We are one of the world’s five largest producers of iron ore and metallurgical coal. With a geographically
diversified portfolio of iron ore and coal assets, we are strategically positioned to serve our network of
steel plants and the external global market. While our steel operations are important customers, our
supply to the external market is increasing as we grow.
In 2019, ArcelorMittal had revenues of $70.6 billion and crude steel production of 89.8 million metric
tonnes, while own iron ore production reached 57.1 million metric tonnes.
ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT),
Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia
(MTS).
For more information about ArcelorMittal please visit: http://corporate.arcelormittal.com/
Contact information ArcelorMittal Investor
Relations
Europe
+44 20 7543 1156
Americas
+1 312 899 3985
Retail
+44 20 7543 1156
SRI
+44 207543 1156
Bonds/Credit
+33 171 921 026
Contact information ArcelorMittal Corporate
Communications
E-mail:
xxxxx@xxxxxxxxxxxxx.xxx
Phone:
+442076297988
ArcelorMittal Communications
Sophie Evans
+44 203 214 2882 / +44 7825 595849
Paul Weigh
+44 20 3214 2419
Dan White
+44 7468354695
Page 4 of 5
Ends
About ArcelorMittal
ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries and an industr ial footprint in
18 countries. Guided by a philosophy to produce safe, sustainable steel, we are the leading supplier of quality steel in the
major global steel markets including automotive, construction, household appliances and packaging, with world-class
research and development and outstanding distribution networks.
Through our core values of sustainability, quality and leadership, we operate responsibly with respect to the health, safety
and wellbeing of our employees, contractors and the communities in which we operate.
For us, steel is the fabric of life, as it is at the heart of the modern world from railways to cars and washing machines. We
are actively researching and producing steel-based technologies and solutions that make many of the products and
components people use in their everyday lives more energy efficient.
We are one of the world’s five largest producers of iron ore and metallurgical coal. With a geographically diversified
portfolio of iron ore and coal assets, we are strategically positioned to serve our network of steel plants and the external
global market. While our steel operations are important customers, our supply to the external market is increasing as we
grow.
In 2019, ArcelorMittal had revenues of $70.6 billion and crude steel production of 89.8 million metric tonnes, while own
iron ore production reached 57.1 million metric tonnes.
ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on
the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).
For more information about ArcelorMittal please visit: http://corporate.arcelormittal.com/
Contact information ArcelorMittal Investor Relations
Europe
+44 20 7543 1156
Americas
+1 312 899 3985
Retail
+44 20 7543 1156
SRI
+44 207543 1156
Bonds/Credit
+33 171 921 026
Contact information ArcelorMittal Corporate
Communications
E-mail:
xxxxx@xxxxxxxxxxxxx.xxx
Phone:
+442076297988
ArcelorMittal Communications
Sophie Evans
+44 203 214 2882
Paul Weigh
+44 20 3214 2419
Dan White
+44 7468354695
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