Steel producer and Metal Recycler sets venture for decarbonizing Steel Mills
Steel Dynamics has formed a joint venture with renewable biocarbon products firm Aymium that will initially supply a renewable alternative to fossil fuel carbon to Steel Dynamics’ electric arc furnace steel mills.
The joint venture, called SDI Biocarbon Solutions, will be 55% owned by Steel Dynamics and 45% by Aymium. The renewable alternative will be produced using Aymium’s patented technology.
The initial annual production capacity of the biocarbon production facility, constructed by the joint venture, is expected to be 160,000 metric tons with a capital investment of approximately $125 million to $150 million. The facility is expected to begin operations late in 2023.
“We believe this strategic joint venture will significantly reduce our steelmaking greenhouse gas emissions, which are already materially lower than our global competitors, in a cost-effective manner,” Mark D. Millett, Chairman, President, and Chief Executive Officer of Steel Dynamics, said. “We also believe Aymium’s process can provide a renewable fossil fuel carbon alternative for Iron Dynamics, our proprietary ironmaking operations. We have successfully trialed Aymium’s biocarbon product in our steel operations, and conservatively estimate this first facility will reduce our Scope 1 steelmaking greenhouse gas emissions intensity between 20 and 25 percent, with potential upside from the use of the facility’s biogas.”
The investment will contribute to the firm’s commitment to reduce its environmental footprint.
“Our mission is to accelerate the transition away from fossil fuels and reduce the impact on the environment,” said James Mennell, Aymium Chief Executive Officer. “Aymium’s renewable biocarbon products allow for immediate replacement of fossil fuels with renewable, carbon negative inputs, without the need to modify existing manufacturing processes or equipment.”
Steel Dynamics is one of the largest domestic steel producers and metals recyclers in the United States, with facilities located throughout the United States, and in Mexico. Steel Dynamics produces steel products, including hot roll, cold roll, and coated sheet steel, structural steel beams and shapes, rail, engineered special-bar-quality steel, cold finished steel, merchant bar products, specialty steel sections and steel joists and deck.
