With all eyes on decarbonization, how will we manufacture steel in a less carbon intensive way?

The technologies required to reach ArcelorMittal's ambitious target of net zero by 2050 are in various stages of maturity. A significant effort from the industry, academia, policy makers, governments, and society in general will be needed to ensure our generation wins this battle and controls the temperature increase on our planet.

Here is an example of how ArcelorMittal is working towards greener steel.

Harnessing green hydrogen and renewable electricity, the ArcelorMittal Sestao plant will achieve zero carbon-emissions.

The development is the result of an investment of €1 billion in the construction of a green hydrogen direct reduced iron (DRI) plant at its plant in Gijón, as well as a new hybrid electric arc furnace (EAF).

By 2025, the Sestao plant – which manufactures a range of flat steel products for the automotive and construction sectors, and general industry - will produce 1.6 million tonnes of zero carbon-emissions steel by:

  • Changing the metallic input by increasing the proportion of circular, recycled scrap, and using green hydrogen-produced DRI from Gijón in its two existing EAFs.
  • Powering all steelmaking assets (EAFs, rolling mill, finishing lines) with renewable electricity.
  • Introducing several key emerging technologies that will replace the small, remaining use of fossil fuel in the steelmaking process with carbon-neutral energy inputs, such as sustainable biomass or green hydrogen.

Central to this development will be the construction of a 2.3 million-tonne green hydrogen DRI unit in Gijón. Around 1 million tonnes of DRI will be transported to Sestao to be used a feedstock for its two EAFs.

The national and the Basque government’s support in this project is crucial, firstly from a funding perspective, given the significant cost associated with the transition to carbon-neutral steelmaking. Secondly, because it will enable ArcelorMittal to have access to green hydrogen supplied through a consortium of companies that will cooperate in the construction of the infrastructure required in order to produce hydrogen in the Iberian Peninsula using solar‑powered electrolysis and to transport it directly through a network of pipelines. The initiative involves the construction of multiple large-scale solar farms, with hydrogen produced in situ and with the corresponding impact in terms of employment.

In addition to the investments in the DRI and EAF installations in Gijón, ArcelorMittal will invest €50 million in Sestao. This will fund the introduction of key emerging technologies required to bring the plant to zero carbon-emissions, supporting 1.6 million tonnes of production.

Steel manufacturing in the future will also benefit from Industry 4.0. Digital initiatives have precipitated incredible breakthroughs in nanotechnology, quantum computing, biotechnology, the Internet of things, fifth-generation wireless technologies, 3D printing or additive manufacturing, and fully autonomous vehicles.

These new tools can improve a business model and generate new revenue and value, especially for heavy manufacturing companies like ArcelorMittal, if those companies are willing to embrace digitalization.

Industry 4.0 in action