ArcelorMittal, LanzaTech and Primetals Technologies announce partnership to construct breakthrough ?87m biofuel production facility
(Thomson Reuters ONE) -
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 CO(2) 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 CO(2)
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 CO(2) 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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Datum: 13.07.2015 - 10:00 Uhr
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News-ID 406217
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