Trial carbon capture unit begins operating on Blast Furnace at ArcelorMittal Gent, Belgium

Rhea-AI Summary

ArcelorMittal, in partnership with Mitsubishi Heavy Industries (MHI), BHP, and Mitsubishi Development, has initiated a pilot carbon capture unit at its Gent site in Belgium. The initiative aims to test the feasibility of full-scale deployment over one to two years, capturing a significant portion of the site's CO2 emissions. The trial, part of a broader collaboration announced in October 2022, will initially focus on blast furnace and reheating furnace gases, with potential expansion to other emission points. This project supports the EU's goal of achieving 50 million tonnes of CO2 storage capacity by 2030 and aligns with the IEA's target for decarbonizing steel production. The trial will proceed in two phases, starting with capturing 300kg of CO2 daily from blast furnace gases.

Positive

• BHP's involvement in the project supports the trial financially, showcasing its commitment to sustainability.
• The trial aligns with the EU's target of 50 million tonnes CO2 storage capacity by 2030.
• The technology, if successful, could capture a significant portion of emissions at the Gent site.
• The project supports the IEA's target for decarbonizing 37% of primary steel production by 2050.
• The pilot project represents a significant step towards achieving net-zero emissions in the steel industry.

Negative

• The trial's success is uncertain, potentially affecting investor confidence.
• The project involves high costs without guaranteed success in capturing emissions effectively.
• There is a technical challenge in separating and capturing CO2 due to varying contaminants in blast furnace gases.
• The multi-phase trial could face delays, affecting the overall timeline.

Insights

Environmental Engineer

The commencement of the carbon capture unit pilot at ArcelorMittal Gent represents a significant development in the steel industry's efforts to reduce carbon emissions. This initiative aligns with the broader global push for decarbonization and the EU's climate goals, notably the aim for an annual CO2 storage capacity of 50 million tonnes by 2030. From a technical standpoint, the pilot project involving MHI's Advanced KM CDR Process™ technology is pivotal. The technology’s ability to capture CO2 from multiple emission points, such as the blast furnace and reheating furnace gases, is notable. If successful, this could pave the way for its adoption in other high-emission industries beyond steel manufacturing. Importantly, the project's multi-phase nature aims to address the complex technical challenges associated with capturing CO2 from gases with varying contaminant levels, which can provide valuable insights into the scalability and adaptability of carbon capture solutions across different industrial applications.

Financial Analyst

For investors, ArcelorMittal's commitment to deploying carbon capture technology, supported by major partners like Mitsubishi Heavy Industries and BHP, is a positive signal. This collaboration demonstrates a proactive approach to addressing environmental regulations and mitigating future carbon taxes. Over the short term, the project may not directly impact ArcelorMittal's financials significantly, but it positions the company favorably for long-term sustainability and compliance with increasingly stringent environmental regulations. Moreover, successful implementation of this technology could lead to operational cost savings in the future and enhance the company's reputation, potentially attracting ESG-focused investors. This pilot project could essentially serve as a stepping stone for ArcelorMittal to pioneer decarbonization in the steel industry, which might result in a competitive edge over peers who lag in adopting similar technologies.

Market Research Analyst

The pilot carbon capture unit marks an essential milestone in the steel sector's transition towards greener production methods. This move comes at a time when both consumers and investors are increasingly prioritizing sustainability. By investing in carbon capture technology, ArcelorMittal is enhancing its ESG (Environmental, Social and Governance) profile, which is important for market perception. The involvement of key industry players such as MHI and BHP adds credibility to the project and indicates a blended approach to innovation and operational excellence. Looking ahead, successful pilot outcomes could stimulate market confidence and possibly lead to an uptick in ArcelorMittal's stock, as the company could be seen as a leader in sustainable steel production. Furthermore, this initiative could spark similar actions from competitors, ultimately propelling the entire industry towards greener solutions.

GENT, Belgium, May 22, 2024 (GLOBE NEWSWIRE) -- ArcelorMittal and partners Mitsubishi Heavy Industries, Ltd. (MHI), BHP, along with Mitsubishi Development Pty Ltd (Mitsubishi Development) have successfully started operating a pilot carbon capture unit on the blast furnace off-gas at ArcelorMittal Gent in Belgium.

The pilot carbon capture unit will operate for one to two years at Gent, to test the feasibility of progress to full-scale deployment of the technology, which would be able to capture a sizeable portion of the Gent site emissions, if successful.  Engineers have been working on site since January to assemble and commission the unit.

In October 2022, the four parties announced their collaboration on a multi-year trial of MHI’s carbon capture technology (Advanced KM CDR Process^TM) at multiple carbon dioxide (CO₂) emission points, starting at the Gent steelmaking site. The pilot carbon capture unit will be testing initially with blast furnace and reheating furnace gas and has the potential to be trialled to capture other important steelmaking gases such as reformer flue gas from a Direct Reduced Iron (DRI) plant.

The development of the carbon capture solution at Gent could feed into multiple  CO₂ transport and storage projects under development in the North Sea region and contribute to global technological solutions required for decarbonisation of steel production. The EU has an objective to achieve an annual  CO₂ storage capacity of 50 million tonnes by 2030, proposed under the Net-Zero Industry Act. Moreover, the International Energy Agency (IEA) estimates CCUS technology needs to apply to more than 37 per cent of primary steel production by 2050, equivalent to 399 Mtpa of  CO₂, for the Net Zero Emissions scenario (Source: IEA Net Zero Roadmap – 2023 update).

To further understand how MHI’s carbon capture technology can be incorporated into existing steel plants, ArcelorMittal is facilitating the trial in Gent, Belgium, with MHI supplying its proprietary carbon capture technology and supporting the engineering studies. BHP and Mitsubishi Development, as key suppliers of high-quality steelmaking raw materials to ArcelorMittal’s European operations, are supporting trial funding.

Speaking in Gent at the consortium meeting, ArcelorMittal Belgium’s CEO, Manfred Van Vlierberghe, said: “ArcelorMittal Belgium's decarbonisation efforts can be summarized in three axes. The first axis focuses on energy efficiency: reuse of waste heat and renewable energy. In our second axis, we are replacing coal with a combination of gas and electrification. And finally, the third axis, is based on circular use of carbon - CCU and CCS. Here, the installation of the carbon capture unit on our Gent blast furnace is a great example. The main ambition is to achieve completely carbon-free processes. A radical change is difficult, so we embrace every step that takes us towards our goal.”  

MHI’s Senior Vice President (CCUS) of GX (Green Transformation) Solutions, Tatsuto Nagayasu, said: “The launch of this pilot carbon capture unit marks a significant milestone on the iron and steel industry’s journey toward net-zero emissions.  As a provider of innovative technologies, we are thrilled to witness our solutions in action, helping to decarbonize existing assets. We eagerly anticipate further deploying our technologies to achieve this goal.” 

BHP Group Sales & Marketing Officer Michiel Hovers said “This represents real progress in proving up the feasibility of carbon capture for steel production, and BHP is delighted to be part of this consortium working on the pilot plant. This work could help develop a technology that may significantly lower CO₂ emissions intensity from the blast furnace which remains critical to meet steel demand, and while other pathways are further matured.” 

Mitsubishi Development Chief Executive Officer, Kenichiro Tauchi said “This pilot is a significant step towards advancement of carbon capture technology as a potential solution to achieve solid emission reductions in the steel sector. We will continue to demonstrate our commitment to advancing confidence in reducing emissions in hard to abate industries as we move towards achieving a carbon neutral society.”

The trial at Gent will have two phases. The first phase involves separating and capturing the CO₂ from the top gas from the blast furnace at a rate of around 300kg of CO₂ a day – a technical challenge due to the differing levels of contaminants in the top gas. The second phase involves testing the separating and capturing of CO₂ in the off-gases in the hot strip mill reheating furnace, which burns a mixture of industrial gases including coke gas, blast furnace gases and natural gas.

FAQ

What is the purpose of the carbon capture unit at ArcelorMittal Gent?

The carbon capture unit aims to test the feasibility of capturing a significant portion of CO2 emissions at the Gent site.

When did ArcelorMittal and partners start operating the pilot carbon capture unit?

The pilot carbon capture unit began operating on May 22, 2024.

Who are the partners involved in the carbon capture project at Gent?

Partners include Mitsubishi Heavy Industries, BHP, and Mitsubishi Development.

What is the initial focus of the pilot carbon capture unit?

The initial focus is on capturing CO2 from blast furnace and reheating furnace gases.

How much CO2 is the pilot unit expected to capture daily during the first phase?

The pilot unit is expected to capture around 300kg of CO2 daily during the first phase.

What is the significance of this carbon capture trial for BHP (BHP)?

BHP's involvement signifies a commitment to sustainable practices and reducing CO2 emissions in steel production.