ArcelorMittal Sestao to become first zero-carbon steel plant

ArcelorMittal, the world’s leading steel and mining company, has announced that its Sestao plant in Spain will become the world’s first full-scale zero carbon emissions steel plant. The company says the development is the result of an understanding with the Government of Spain which will see a total investment of US$1.1bn 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).

Support from the Spanish Government 

Aditya Mittal, Chief Executive Officer of ArcelorMittal, said: “The ability of the Sestao plant to become the world’s first zero carbon-emissions steel plant would not be possible without the support and partnership of the Spanish government. This is a project that will require the support of many different partners to succeed; the plan hinges on the supply of affordable, mass-scale hydrogen, access to sustainable finance, and a supportive legal framework that allows us to be competitive globally. 

“The Spanish government has embraced the opportunity and developed clearly defined plans to transition the country to having the energy infrastructure that the green economy will require. ArcelorMittal plans to switch Sestao to renewable electricity. This, together with the green DRI and hydrogen feeding the burners, will result in the Sestao plant achieving zero carbon emissions. We are also working to reduce Scope 3 emissions to zero”, added Mittal. 

According to ArcelorMittal, around 1mn tonnes of DRI will be transported to Sestao to be used as a feedstock for its two EAFs. In addition to the investments in the DRI and EAF installations in Gijón, ArcelorMittal plans to invest US$59mn in Sestao. This aims to fund the introduction of key emerging technologies required to bring the plant to zero carbon emissions, the company said. 

The Sestao steel plant 

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 mn tonnes of zero carbon-emissions steel. ArcelorMittal claims it can achieve this by:

1. 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.
2. Powering all steelmaking assets (EAFs, rolling mill, finishing lines) with renewable electricity.
3. 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.

Achieving net-zero carbon emissions by 2050

One of ArcelorMittal’s targets is to achieve net-zero emissions by 2050. With this in mind, the company has set a second goal. Aditya Mittal said: “Having announced a net-zero target for 2050, we, therefore, set ourselves the challenge to identify how we could take an existing steel plant to zero carbon emissions within the next five years. Our teams have been working incredibly hard to turn this ambition into the plan that we have announced.

“This is a hugely significant development and demonstrates the strength of innovation embedded in our people, our unparalleled technology leadership, and what can be achieved through investment in existing steelmaking infrastructure. It means ArcelorMittal will be the first company in the world to be in a position to offer its customers meaningful volumes of zero carbon-emissions steel”, he said.

He concluded: “As a large emitter, the steel industry can make a vital contribution to achieving net-zero by 2050. This project demonstrates what is achievable”.