Steel Groups React Favorably to Inflation Reduction Act

“The true impact of this bill will have to be measured over time, as it will impact individuals, companies, and industries in different ways. But we know this for sure, America’s electric arc furnace steelmakers, who today produce the highest-quality steel with the lowest emissions found anywhere in the world, look forward to partnering with the Department of Energy’s new Office of Clean Energy Demonstrations to further decrease our already historically low emission rates,” SMA president Philip Bell said in a statement.

“By working together, we will not only supercharge the fight against climate change today, but we will create a new model for low-carbon steel that will lead the global steel industry into the future,” Bell added.

The bill provides $5.8 billion in funding for the new Office of Clean Energy Demonstrations to financially assist key sectors of the economy in deploying new technologies to accelerate greenhouse gas (GHG) emissions reductions.

Steel’s role in sustainability and carbon reduction will be highlighted by the bill, according to Lisa Harrison, senior vice president of communications at the American Iron and Steel Institute (AISI).

“Steel is a critical component in the continued development of all clean energy and is therefore essential to many of the provisions called for under the Inflation Reduction Act to combat the global climate crisis. Wind, solar and tidal renewable energy systems all depend on steel—as does the electrical grid. And steel is integral to the electric vehicle (EV) market—not only in the vehicles but also in charging stations,” Harrison said in a statement sent to SMU.

The Act includes tax credits for Americans to purchase EVs whose final assembly occurs in North America, as well as tax credits for carbon capture, hydrogen production and investment, renewable energy production, nuclear production, clean fuel, and energy efficiency.

The United Steelworkers (USW) union lauded passage of the Act for its ability to bring down health care costs and invest in domestic manufacturing and clean energy supply chains.

“Building out our nation’s capacity for solar, wind and other sources of renewable energy will create good, domestic manufacturing jobs and help break our dangerous dependence on foreign producers to meet our needs,” USW international president Tom Conway said.

“At the same time, providing incentives for a wide variety of technologies like carbon capture, direct air capture, and nuclear power will help ensure that our steel and other critical industries remain among the cleanest in the world,” Conway added.

The Inflation Reduction Act was passed by both the Senate and the House of Representatives without the support of Republicans. The Senate vote was split 50-50, with Vice President Kamala Harris casting the tie-breaking vote in favor of the bill. President Joe Biden is expected to sign the bill into law this week.

By Laura Miller, Laura@SteelMarketUpdate.com