13 July 2015 - ArcelorMittal, the world's leading
steel and mining company, LanzaTech, the carbon recycling company,
and Primetals Technologies, a leading technology and service
provider to the iron and steel industry today announce they have
entered into a letter of intent to construct Europe's first-ever
commercial scale production facility to create bioethanol from
waste gases produced during the steelmaking process. The resulting
bioethanol can cut greenhouse gas emissions by over 80 per cent
compared with conventional fossil fuels. It will predominantly be
used in gasoline blending, but it can also be further processed
into other products such as drop in jet fuel.
The 47,000 ton ethanol/annum project, sufficient
to fuel half a million cars with ethanol blended gasoline, will
demonstrate the added value of recycling waste streams, not only by
reducing emissions at source, hence reducing ArcelorMittal's direct
carbon footprint, but by keeping fossil fuels in the ground through
the production of commodity chemicals and fuels that would
otherwise be made from oil.
Approximately 50 per cent of the carbon used in
the chemistry of steelmaking leaves the process as carbon monoxide.
Today, this waste gas stream is combusted as carbon dioxide and
either flared or used to heat and power the steel mill. In either
case, the resulting CO2 is
emitted.
LanzaTech's technology, however, recycles the
waste gases and ferments them with a proprietary microbe to produce
bioethanol. Every ton of bioethanol produced, displaces 5.2 barrels
of gasoline as well as reducing ArcelorMittal's CO2
emissions by 2.3 tons.
LanzaTech's carbon recycling
technology was recently awarded the United States' highest green
chemistry honor, the Environmental Protection Agency (EPA)
Presidential Green Chemistry Award. LanzaTech is collaborating with
companies across multiple sectors including US aircraft
manufacturer Boeing and Japanese industrial conglomerate
Mitsui.
Construction of the €87 million
flagship pilot project, which will be located at ArcelorMittal's
steel plant in Ghent, Belgium, is anticipated to commence later
this year, with bioethanol production expected to start mid-2017.
Construction will be in two phases, with phase one providing an
initial capacity of 16,000 tons of ethanol per annum by mid-2017
and phase two, which will be completed in 2018, bringing the total
capacity to 47,000 tons of ethanol per annum.
ArcelorMittal, which has been
working on this project since 2011, has signed a long-term
partnership agreement with LanzaTech. Hence, once construction of
the Ghent flagship plant is complete and the commercial viability
of the project is proven, the intention is to construct further
plants across ArcelorMittal's operations. If scaled up to its full
potential in Europe, the technology could enable the production of
around 500,000 tons of bioethanol a year.
"This partnership is an example of
how we are looking at all potential opportunities to reduce
CO2 emissions and
support a transition to a lower carbon economy," said Carl DeMare
Vice President, Innovation, ArcelorMittal. "Steel is produced
through a chemical process that results in high levels of waste
gases being emitted; this new technology will enable us to convert
some of these waste gases into fuels that deliver significant
environmental benefits when compared to conventional fossil
fuels. It is a further example of why our carbon footprint
should be viewed on a life cycle analysis basis, given steel is
100% recyclable and the material impact we make on reducing the
carbon footprint of our customers through product innovation."
"ArcelorMittal and Primetals
Technologies have consistently stayed on the cutting edge of
innovation in the steel industry and have demonstrated their
commitment to reducing their carbon emissions," said Jennifer
Holmgren, CEO of LanzaTech. "We are tremendously excited to
announce this partnership and our first production facility in
Europe at a time when it is abundantly clear that we need all
solutions and the commitment of large corporations, cities and
countries around the world, to help us stay within our 2 degree
carbon budget and keep fossil reserves in the ground."
As the production of bioethanol is
a new activity, ArcelorMittal intends to set up a joint venture
company for the roll out of this technology with dedicated
partners. Financing will be sought from a number of different
sources. A total of €10.2 million has been secured under the EU's
2020 Horizon programme for research and development and talks are
currently taking place with potential equity and debt partners.
Primetals Technologies will be
responsible for part of the engineering, automation, key equipment
and commissioning.
"We are excited to be a partner in
this leap-frog project with LanzaTech and ArcelorMittal. Once in
operation, it will become a game changer within the industry and a
benchmark for low-carbon footprint steelmaking", said Karl
Purkarthofer, Senior Vice President of Primetals Technologies.
About ArcelorMittal
ArcelorMittal is
the world's leading steel and mining company, with a presence in 60
countries and an industrial footprint in 19 countries. Guided by a
philosophy to produce safe, sustainable steel, we are the leading
supplier of quality steel in the major global steel markets
including automotive, construction, household appliances and
packaging, with world-class research and development and
outstanding distribution networks.
Through our core
values of sustainability, quality and leadership, we operate
responsibly with respect to the health, safety and wellbeing of our
employees, contractors and the communities in which we
operate.
For us, steel is
the fabric of life, as it is at the heart of the modern world from
railways to cars and washing machines. We are actively researching
and producing steel-based technologies and solutions that make many
of the products and components people use in
their everyday lives more energy
efficient.
We are one of the
world's five largest producers of iron ore and metallurgical coal
and our mining business is an essential part of our growth
strategy. With a geographically diversified portfolio of iron ore
and coal assets, we are strategically positioned to serve our
network of steel plants and the external global market. While our
steel operations are important customers, our supply to the
external market is increasing as we grow.
In 2014,
ArcelorMittal had revenues of US$79.3 billion and crude steel
production of 93.1 million tonnes, while own iron ore production
reached 63.9 million tonnes.
ArcelorMittal is
listed on the stock exchanges of New York (MT), Amsterdam (MT),
Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of
Barcelona, Bilbao, Madrid and Valencia (MTS).
For more
information about ArcelorMittal please visit:
http://corporate.arcelormittal.com/
About
LanzaTech
LanzaTech's
proprietary gas fermentation technology provides an economic route
to fuels and high-value chemicals by recycling waste carbon
streams. LanzaTech's solutions mitigate carbon emissions while
displacing fossil resources needed for fuel and chemical
production. Founded in New Zealand, LanzaTech has raised more than
US$200 million from investors including Khosla Ventures, K1W1,
Qiming Venture Partners, Malaysian Life Sciences Capital Fund,
Petronas, Mitsui, Primetals, China International Capital Corp,
Suncor and the New Zealand Superannuation Fund.
For more information about
LanzaTech please visit: http://www.lanzatech.com
About Primetals
Technologies
Primetals Technologies,
Limited headquartered in London, United
Kingdom is a worldwide leading engineering, plant-building and
lifecycle services partner for the metals industry. The company
offers a complete technology, product and service portfolio that
includes integrated electrics, automation and environmental
solutions. This covers every step of the iron and steel production
chain, extending from the raw materials to the finished product -
in addition to the latest rolling solutions for the nonferrous
metals sector. Primetals Technologies is a joint venture of
Mitsubishi Heavy Industries (MHI) and Siemens. Mitsubishi-Hitachi
Metals Machinery (MHMM) - an MHI consolidated group company with
equity participation by Hitachi, Ltd. and the IHI Corporation -
holds a 51% stake and Siemens a 49% stake in the joint venture. The
company employs around 9,000 employees worldwide. Further
information is available on the Internet at
www.primetals.com.
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Contact information ArcelorMittal Investor
Relations |
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Europe |
+35247923198 |
Americas |
+13128993985 |
Retail |
+35247923198 |
SRI |
+442075431123 |
Bonds/Credit |
+33171921026 |
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Contact information ArcelorMittal Corporate
Communications |
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E-mail: |
press@arcelormittal.com |
Phone: |
+442076297988 |
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ArcelorMittal Corporate
Communications |
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Paul Weigh (head of media relations) |
+442032142882 |
Laura Nutt
Arne Langer (ArcelorMittal Europe)
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+442075431125
+491786795808 |
LanzaTech
Freya Burton (Director Communications) |
+16303478054
freya.burton@lanzatech.com |
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: ArcelorMittal S.A. via Globenewswire
HUG#1936948
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