By Nathan Allen

ArcelorMittal (MT.AE) said Monday that it has started construction on a 150 million-euro ($176.5 million) installation at its site in Ghent, Belgium, that will convert carbon emissions into bioethanol.

The steelmaker had previously said it would invest EUR87 million in the plant, which is being developed in partnership with Chicago-based carbon recycling specialist LanzaTech.

LanzaTech's technology uses microbes that feed on carbon monoxide produced by ArcelorMittal's blast furnaces to create bioethanol that can be used as fuel or as a feedstock to manufacture plastics, the company said.

"This is the first installation of its kind on an industrial scale in Europe and once complete, annual production of bioethanol at Ghent is expected to reach around 80 million liters," ArcelorMittal said.

The plant should create approximately 500 construction jobs over the next two years and between 20 and 30 permanent jobs once it enters production in 2020, ArcelorMittal said.

Write to Nathan Allen at nathan.allen@dowjones.com

(END) Dow Jones Newswires

June 11, 2018 01:52 ET (05:52 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
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