The steelmaker is set to receive the US Department of Energy (DOE)’s funding for the same, ArcelorMittal announced in a social media post.
“Together with Dastur Energy, MN Dastur & Co and ION Clean Energy, we will research an industrial-scale solution for carbon capture from our blast furnace-based steelmaking operations. This FEED study, a crucial first step, will work on designing a carbon capture system capable of capturing 50-70% of CO2 emissions from blast furnace gas,” ArcelorMittal said.
The research will be conducted from ArcelorMittal’s operations at its Burns Harbor plant in Indiana. The research would help identify available technology to enable competitive, environmentally friendly, sustainable blast furnace based processes for making low carbon emissions steel,” the company said.
DOE announced nearly $72 million federal funding to support the development and advancement of carbon capture technologies and ArcelorMittal is said to be the only steel maker to receive a part of the funding.
“Apart from the US, this project has significant bearing on enabling low emissions steel production in India, the second largest steel producer in the world, with the blast furnace route being the primary route of steel production,” said Atanu Mukherjee, chief executive of MN Dastur & Co.
Dastur Energy is a part of MN Dastur group.
“At 300 mt per annum of future production, Indian steel will emit close to half a billion tons of carbon dioxide per year primarily through the blast furnace route,” Mukherjee said.
This means ArcelorMittal can take advantage of carbon tax credits to offset their taxes in profit. This can improve the company’s competitiveness while reducing the carbon footprint.
A carbon capture unit of the scale of 1.5 mtpa costs about $300-400 million.
“This is probably the first industrial scale application of low emissions steel production through blast furnaces using an innovative low carbon fuel conversion and carbon capture scheme which probably has the lowest cost of conversion and capture,” Mukherjee said.