Scrap Prices North America

ArcelorMittal’s Green Hydrogen DRI Test a Success in Canada

May 2, 2022

ArcelorMittal took a big step toward reducing carbon dioxide (CO2) emissions at its long products mill in Contrecoeur, Quebec, by partial replacement of natural gas with green hydrogen.

ArcelorMittal The successful test on the mill’s direct reduced iron (DRI) modules saw 6.8% of natural gas replaced with green hydrogen during a 24-hour period. The outcome contributed to a measurable reduction in CO2 emissions. The result is noteworthy because the iron ore reduction process alone contributes to more than 75% of the facility’s overall CO2 emissions.

“ArcelorMittal’s ambition is to lead the decarbonization of the steel industry, and this test is an important milestone in the company’s journey to produce zero carbon emissions steel via the DRI-based steelmaking route using green hydrogen as an input,” the company said.

ArcelorMittal Long Products Canada (AMLPC) is evaluating the possibility of carrying out further tests in the coming months by increasing the use of green hydrogen to make DRI. The move could eventually reduce CO2 emissions in Contrecoeur by several hundred thousand tons per year, the company said.

“With one of the lowest carbon footprints in the world, AMLPC is well-positioned to contribute to … decarbonization efforts if the right conditions are in place in Quebec,” ArcelorMittal added.

AMLPC’s low-carbon footprint is driven by an electric-arc furnace (EAF)-DRI pathway to steelmaking. The mill also uses renewable electricity and locally sourced iron ore and scrap metal.

“We have just demonstrated that Quebec can become a global pioneer in the production of low CO2 steel,” AMLPC president and CEO said François Perras said in a statement.

Luxembourg-based ArcelorMittal has so far invested $5.6 billion in four such projects in Spain, Belgium, Canada and France. ArcelorMittal has committed to reducing its CO2 emissions intensity by 25% by 2030 and to achieving carbon neutrality by 2050.

By David Schollaert, David@SteelMarketUpdate.com

David Schollaert

David Schollaert is a senior analyst for Steel Market Update. David joined SMU after more than a decade in the metals and mining industry in a myriad of different roles. Much of his early experience and expertise were within the coverage and analysis of steel-making raw materials and served previously as senior editor of the CRU Prices Service. Most recently, however, before his return to market analysis, David held roles as a metals buyer and an operations manager for raw material suppliers. Based in CRU’s Pittsburgh office, David can be reached at david@steelmarketupdate.com or 724-720-1008.