Construction has begun on the world’s first industrial-scale green-hydrogen steel plant, in Ontario, Canada, with Prime Minister Justin Trudeau among the dignitaries taking part in yesterday’s ground-breaking ceremony.
The new ArcelorMittal Dofasco green-steel facility, in Hamilton, Ontario, will cost C$1.8bn ($1.3bn), with the governments of Canada and Ontario contributing C$400m and C$500m, respectively.
ArcelorMittal, the world’s second-largest steel producer, is transitioning the plant from coal-fired blast furnaces — which made it the biggest industrial source of carbon emissions in Ontario — to one that uses electric-arc furnaces and direct-reduced iron (EAF-DRI).
So-called “green steel” uses green hydrogen instead of coal to extract iron from ore — producing direct-reduced iron, or sponge iron, rather than the traditional coke-fired pig iron. It also requires renewable energy to fire electric-arc furnaces that melt scrap steel in order to be truly green.
But ArcelorMittal — which is 37%-owned by billionaire chairman Lakshmi Mittal — says the 2.5 million-tonne capacity DRI furnace will “initially operate on natural gas” rather than hydrogen.
“[The furnace] will be constructed ‘hydrogen-ready’ so it can be transitioned to utilize green hydrogen as a clean energy input as and when a sufficient, cost-effective supply of green hydrogen becomes available,” the company said in a statement.
It could be many years before a “sufficient, cost-effective supply” is available, and the wording leaves the door open for ArcelorMittal to continue using natural gas at the site indefinitely.
While the “ground-breaking” ceremony has already taken place, actual construction will not begin until January, with the demolition of the coke plant, which will make way for the new DRI facility. The demolition itself will take up to nine months, with foundation work on the DRI building not due to begin until 2024.
“Construction on the new assets will be complete in 2026, at which point a 12- to 18-month transition phase will begin with both steelmaking streams [blast furnace and DRI-EAF] active,” said the ArcelorMittal statement. “The transition will be complete by 2028.”
The C$1.8bn investment — a public-private partnership — is expected to reduce carbon emissions at the plant by 60%.
The new facility is “an example to the world of what clean innovation will look like”, said Trudeau, in a speech at the ground-breaking ceremony.
“By investing in ArcelorMittal Dofasco’s project to produce clean steel, we’re investing in the future of this plant and this industry.”
He later told reporters: “It’s not happening in Europe, it’s certainly not happening in China… but this big step is being led right here.”
Trudeau is only partly correct. Two Swedish companies — Hybrit and H2 Green Steel — have been leading Europe’s push towards green steel, with Hybrit (a partnership between utility Vattenfall and steelmakers SSAB and LKAB) producing the world’s first sponge iron back in June last year. But ArcelorMittal seems one step ahead in terms of commercialisation.
“ArcelorMittal’s ambition is to lead the decarbonization of the steel industry,” said CEO Aditya Mittal, Lakshmi’s son. “Steel is a... vital material for the renewable energy infrastructure, the electric vehicles and the low-carbon buildings that will build our zero-carbon world.”
ArcelorMittal has already announced plans to decarbonise its steelmaking facilities in Belgium, France and Spain, and aims to reach net-zero emissions worldwide by 2050 — although this includes carbon offsets.
