ArcelorMittal receives EUR 75 million in EIB loan for carbon reduction projects

May 19 (Renewables Now) – Luxembourg steelmaker ArcelorMittal SA (AMS: MT) has secured a loan of EUR 75 million (USD 68 million) for two projects in Belgium to reduce carbon dioxide (CO2) emissions (EIB) announced on Monday.

The EIB loan is supported by InnovFin Energy Demonstration Projects and funded under Horizon 2020 and the European Commission’s NER 300 grant program. It will be used for the Steelanol and Torero projects, which represent a total investment of 215 million euros.

The two projects, which are to be located in the company’s steelworks in Ghent near Zelzate, Flanders, are intended to reduce CO2 emissions by up to 350,000 tons per year in the first phase.

Steelanol will be a 165 million euro demonstration plant that will capture exhaust gases from the blast furnace and convert it into recycled carbon ethanol. This will be the first commercial product in ArcelorMittal’s Carbalyst family of recycled carbon chemicals. The ethanol can then be mixed and used as a liquid fuel.

The project, due to be completed in 2022, will use technology developed by LanzaTech. Primetals Technologies and E4tech are also involved.

Once started, Steelanol is expected to produce up to 80 million liters (21 million gallons) of ethanol annually.

Torero, a € 50 million demonstration plant, will convert waste wood into biochar, which will partially replace the coal currently used in the blast furnace. In the first project phase, the plant will have the capacity to convert up to 60,000 tons of waste wood into around 40,000 tons of biochar per year. This capacity will be doubled in the second phase of the project after the first torero reactor has started work.

The Torero system is being developed in cooperation with Torr-Coal, Renewi, the Joanneum Research Center, the University of Graz and the TU Chalmers. Operations are scheduled to start at the end of 2022.

(EUR 1.0 = USD 0.913)

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