(Credit: Steel Dynamics)Steel Dynamics and Aymium are teaming up to use renewable biocarbon in the steelmaking process, which will help significantly reduce emissions from production.
The two companies have entered a joint venture which will operate under the name SDI Biocarbon Solutions. As part of the joint venture, the companies will build and operate a biocarbon production facility to supply Steel Dynamic’s electric arc furnace steel mills using Aymium’s technology as an alternative to fossil fuels.
The facility’s production capacity is expected to be more than 160,000 metric tons of steel per year. The investment in the facility is expected to be $125 million to $150 million, with a planned opening in late 2023. Steel Dynamics owns 55% of the joint venture with Aymium owning the remaining piece.
Steel Dynamics says it has successfully trialed the biocarbon product in its steelmaking operations and estimates it will reduce the company’s steelmaking Scope 1 emissions by 20% to 25%. The use of biocarbon is expected to replace over two-thirds of its carbon usage in its steel mills, the company says.
Aymium says the biocarbon technology allows for the immediate replacement of fossil fuels without the need to modify existing manufacturing processes or equipment. Steel Dynamics also says the biocarbon could be used as a renewable alternative for its ironmaking operations.
According to the International Energy Agency, steel production accounts for about 8% of the world’s carbon emissions. In order to reach net zero by 2050, the agency says steel emissions need to be reduced by 30%.
That has led to a significant need to make steel production more sustainable, and several steel companies have made recent moves to make improvements.
In February ArcelorMittal acquired recycling company John Lawrie Metals to increase the use of scrap metal in its production. US Steel is building a $3 billion sustainable mill in Arkansas that will feature two electric arc furnaces. Last year Nucor launched a line of net-zero carbon steel products. The industry is also seen as having investment potential when it comes to renewable energy resources.
