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STEELANOL (EDP)

Making bioethanol from steel

ArcelorMittal saves CO2 emissions with its decarbonising technology—and turns it into biofuel.

Status
First signature
Signed
15/05/2020
Amount
EUR 75,000,000
Countries
Belgium
Sector(s)
Industry
See more

Signature(s)

Amount
€ 75,000,000
Countries
Sector(s)
Belgium : € 75,000,000
Industry : € 75,000,000
Signature date(s)
15/05/2020 : € 75,000,000
Link to source
Data sheet

Summary sheet

Release date
11 January 2018
Status
Reference
Signed | 15/05/2020
20170622
Project name
Promoter - financial intermediary
STEELANOL (EDP)
ARCELORMITTAL
Proposed EIB finance (Approximate amount)
Total cost (Approximate amount)
EUR 75 million
EUR 154 million
Location
Sector(s)
Description
Objectives

First of its kind demonstration plant for the production of advanced bio-ethanol through an innovative gas-fermentation process using exhaust gases emitted by a steel mill.

The project aims to demonstrate the commercial viability of such bio-ethanol production to improve the sustainability of the European steel manufacturing industry and its profitability, by valorising steel process off-gases.

Environmental aspects
Procurement

The project will be implemented within the perimeter of fully authorised existing facilities. According to the competent authority, an Environmental Impact Assessment (EIA) is not required. The project has been screened out according to Annex II of the EIA Directive 2014/52/EU amending the Directive 2011/92/EU. The Bank's services will assess the environmental and climate relevant details during project appraisal.

The Bank will require the promoter to ensure that implementation of the project will be done in accordance with the Bank's Guide to Procurement.

Link to source
Summary sheet

Disclaimer

Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).

Documents

Environmental and Social Data Sheet (ESDS) - STEELANOL (EDP)
Publication Date
18 May 2019
Document language
Main Topic
Lending
Document Number
79474008
Document Focus
Environmental Information
Project Number
20170622
Sector(s)
Regions
Countries
Publicly available
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News & Stories

Inside the project

How and Why

Reducing CO2 emissions and promoting a circular economy

Why

  • Steel-making is a high-emissions industry. We need steel, but we don’t need the emissions. We need to make steel sustainable
  • Energy efficiency in industrial processes can make a big dent in global emissions
  • An innovation with global implications developed in Europe. We back European innovators

How

  • This is a first-of-its kind industrial scale demonstration of ground-breaking new technology that will help reduce CO2 emissions in steel production and promote a circular economy
  • The technology supported by the project will reduce the steelmaker’s CO2 emissions in Belgium and then at other sites in Europe and around the world
  • The project involves converting waste wood into a coal substitute that will be used in the steel plant along with waste CO2 to produce bio-ethanol

Impact

Lower emissions and a source of cleaner fuel

  • Cuts the CO2 emitted by the steel plant by an amount equivalent to 250,000 cars driven for a year
  • Produces up to 80 million litres of recycled carbon ethanol a year
  • Creates up to 500 construction jobs over two years and 20-30 new permanent jobs

250,000

Amount of equivalent cars driven a year

Cuts of CO2 emitted by the steel plant

Play video

0:52

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Story

Big steelmaker ArcelorMittal uses an innovative steel decarbonisation technology that saves CO2 emissions–and turns them into useful biofuel

30%

Target reduction

Of carbon emissions by 2030 and carbon neutrality by 2050.

It contributes to the circular economy and generates green ethanol, which can be used as fuel or feedstock in multiple chemical processes.
Senso Figaredo Pire

Senior loan officer, European Investment Bank

Energy-intensive industries cause roughly 15% of worldwide CO2 emissions. The world’s largest steel manufacturer will deploy a pioneering technology to make its production greener and contribute to the circular carbon economy.

A blast furnace uses coal to chemically reduce iron ore into iron, which is then further processed into steel. It releases large amounts of greenhouse gases CO and CO2 in the process. In Europe, steelmakers capture these by-product gases, transforming them into electricity and useful heat. But then the CO2 is released into the atmosphere.

That makes integrated steel plants a key area for decarbonisation. Big steelmaker ArcelorMittal Belgium is implementing a first of its kind, innovative technology at a scale and complexity that doesn’t exist anywhere in the world yet. The project is in line with ArcelorMittal Europe’s carbon emissions reduction roadmap, which targets a 30% reduction by 2030 and carbon neutrality by 2050.

The installation captures the CO- and CO2-rich off-gases emitted from the blast furnace and transforms them into ethanol through a gas fermentation process that uses microbes (Carbalyst® project). This technology was developed by the US firm LanzaTech, with which ArcelorMittal has partnered for a decade.

There’s a second step to the project, too. Since carbon is currently used as an input to the blast furnace in the form of fossil coal, the company intends to partly replace this fossil carbon with waste wood that has been treated to become bio-coal (Torero project). This substitution of fossil coal by a circular carbon is already a step towards the green transition.

Here’s why industry needs to go green. From our award-winning climate podcast.

As a material producer, we believe that we must focus on circular economy and develop ‘cradle to cradle’ processes which use less primary resources and enable us to reduce the carbon emissions.
Carl De Maré

Head of technology strategy, ArcelorMittal Group

What’s better than recycled carbon? Recycled and green carbon

This investment protects existing jobs by keeping the steel industry in Europe
Marc Tonteling

Engineer, European Investment Bank.

The project is economically viable because there is a large demand for ethanol, which is also easier to store and transport than electricity. Ethanol has many different applications. It can be used as fuel, blended with gasoline. It can also be converted into ethylene, a basic component of the plastics manufacturing process, thus contributing to the circular economy.

“This investment protects existing jobs by keeping the steel industry in Europe, where we need highly skilled people to design and operate these plants,” says Marc Tonteling, an engineer at the European Investment Bank.

With the combination of two innovative processes, the company targets the production of 80 million litres of bio ethanol, equivalent to the fuel used by 600 flights between New York and London. ArcelorMittal estimates the CO2 savings to be equal to the yearly emissions of 350 000 cars.

“I liked the enthusiasm and commitment of the people in Ghent, who want to make this project work,” Tonteling says. “We are taking a technological risk, but we want to support the industry, and if this is successful, it can lead to a more generalized production of circular carbon products as bio coal, recycled carbon fuels, bio ethanol and many others.”

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