ArcelorMittal S.A.: Vestas introduces ArcelorMittal’s low carbon-emissions steel offering for wind turbine

Rhea-AI Summary

Vestas and ArcelorMittal have partnered to produce low carbon-emissions steel for wind turbine towers, reducing CO2 emissions by up to 52%. The steel is made from 100% steel scrap melted in an electric arc furnace powered by 100% wind energy, with an EPD certified by an independent party. The first project using this steel will be the Baltic Power offshore wind farm in Poland, which is expected to generate clean electricity for over 1.5 million households.

Insights

Environmental Sustainability Expert

The collaboration between Vestas and ArcelorMittal to produce low carbon-emissions steel for wind turbines is a significant stride towards environmental sustainability in the energy sector. The use of 100% steel scrap melted in an electric arc furnace powered by wind energy represents a closed-loop approach to manufacturing, which is a leap forward in reducing the carbon footprint of renewable energy infrastructure. The reported 25% reduction in emissions for offshore towers and 52% for onshore towers, when compared to conventional steelmaking, underscores the potential for substantial environmental benefits. This initiative aligns with global efforts to reduce greenhouse gas emissions and supports the transition to a circular economy.

Furthermore, the Environmental Product Declaration (EPD) provides transparency and accountability, enabling stakeholders to make informed decisions based on the environmental impact. This initiative could serve as a catalyst for other industries to adopt similar practices, potentially leading to widespread adoption of low-emission materials and further driving down industrial carbon emissions.

Energy Industry Analyst

The use of low carbon-emissions steel in the Baltic Power offshore wind farm project is an innovative development in the renewable energy sector. By reducing the CO₂ emissions of the steel used in turbine construction, Vestas is not only enhancing the sustainability of its products but also potentially improving its competitive advantage in the market. The demand for green technologies is increasing and companies that can deliver environmentally friendly solutions are likely to see a positive impact on their market share and brand reputation.

Moreover, the energy produced by the Baltic Power wind farm could significantly contribute to Poland's energy mix, supporting the country's energy transition goals. The project's capacity to generate up to 1.2 GW and supply clean electricity to over 1.5 million households represents a substantial impact on the regional energy grid and could influence future energy policies and investments in renewables.

Supply Chain Management Expert

The partnership between Vestas and ArcelorMittal is a strategic move that demonstrates the importance of collaboration across the supply chain to achieve sustainability goals. By securing a supply of low carbon-emissions steel, Vestas is addressing the emissions associated with raw material extraction and refinement, which are often overlooked in product lifecycle assessments. This approach can significantly reduce the carbon footprint of the end product and may inspire similar strategies in other sectors.

The commitment from Baltic Power, as the customer, is crucial in driving the transition to sustainable materials. Their willingness to invest in low-emission steel indicates a growing market for sustainable supply chain solutions, which could encourage other companies to follow suit. This trend could lead to a shift in procurement practices, prioritizing sustainability alongside cost and quality and potentially reshaping industry standards.

16 January 2024

• A low carbon-emissions steel production partnership between Vestas and ArcelorMittal will make its first delivery of XCarb® recycled and renewably produced heavy plate steel to an offshore wind farm, built by Baltic Power in Poland
  
  

Vestas, the energy industry’s global partner on sustainable energy solutions, has established a partnership with ArcelorMittal to launch a low carbon-emissions steel offering that significantly reduces the lifetime carbon dioxide emissions from the production of wind turbine towers.

The low carbon-emissions steel is produced using 100% steel scrap which is melted in an electric arc furnace powered by 100% wind energy at the ArcelorMittal steel mill, Industeel Charleroi, in Belgium. The steel slabs are then transformed into heavy plates used for the manufacture of wind turbine towers, at ArcelorMittal’s heavy plate mill in Gijón, Spain. These heavy plates, made with XCarb® recycled and renewably produced heavy plate steel, are initially suitable for the entire onshore wind turbine towers and the top section of offshore wind turbine towers. The low carbon-emissions heavy plate steel has an Environmental Product Declaration (EPD), certified by an independent party, detailing the complete environmental footprint of the product, and allowing easier comparison between products. ArcelorMittal is the only steel producer to produce low-carbon emissions heavy plate steel in large dimensions (up to 18 tonnes), minimising the need for welding and associated CO₂ emissions.

By utilising low carbon-emissions steel in the top two sections of an offshore tower, this emissions reduction translates to a 25% reduction in emissions compared with a tower made from steel produced via the conventional steelmaking route. For an entire onshore tower, the CO₂ reduction is at least 52%.

Commitment from Baltic Power wind farm

Steel and iron constitute 80-90% of a wind turbine's material mass, and approximately 50% of a turbine’s total lifecycle emissions. With the partnership with ArcelorMittal, Vestas has taken an important step forward to reduce CO₂ emissions occurring in its supply chain and can achieve a 66% decrease in emission intensity per kg steel compared with steel made via the conventional steelmaking route.

Even though the low carbon-emissions steel is not yet a standard offering from Vestas, the first project using low carbon-emissions steel will be the Baltic Power offshore wind farm off the coast of Poland. During 2025, Vestas will start the construction of the offshore wind farm, expected to generate up to up to 1.2 GW and ultimately supply clean electricity to more than 1.5 million households in Poland. Vestas will supply, install, and commission 76 V236-15.0 MW wind turbines for the Baltic Power project. Around 52 towers out of 76 will be made with low carbon-emissions steel.

Dieter Dehoorne, Head of Global Procurement at Vestas, says:

“Finding ways to decarbonise the emissions produced during the raw material extraction and refinement of steel is vital for us and the industry in general. Vestas sees the partnership with ArcelorMittal and the adoption of low-emission steel as a significant lever in reducing CO₂ emissions within the wind industry. Commitment from our customers is vital to drive the transition so we are very happy that we can provide value to our customers with this solution. The Baltic Power project stands as a solid example of this progress, having secured the first order and affirming the delivery of substantial value to our customers.”

Laurent Plasman, CMO Industry, ArcelorMittal Europe – Flat Products, says:

“This partnership sends a strong message that it is possible today, to start building the renewable energy infrastructure needed in Europe, with low carbon-emissions steel made with a European supply chain. Having a strong partnership throughout the supply chain is vital to achieve this, so we would like to thank Vestas and Baltic Power for their vision in using XCarb® recycled and renewably produced steel in this important offshore wind project. With stronger public policy support for the use of low carbon-emissions steel in the building of renewables infrastructure, this project could be the first of many to provide wind energy for homes and industry across Europe.”

Jarosław Broda, CEO Baltic Power, says:

"As the first offshore wind farm in the world to utilize low-emission steel, Baltic Power, a joint venture between ORLEN and Northland Power, is pioneering a sustainable future in the renewable energy sector. Being the largest investment in renewable sources in this part of Europe, our project is setting new benchmarks. The use of low-emission steel from Vestas and ArcelorMittal in our wind farm underscores our commitment to innovation and environmental stewardship. We are proud to lead the way in transforming Poland's energy landscape as we progress towards completing the construction by 2026."

Ends

About ArcelorMittal

ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries and primary steelmaking facilities in 16 countries. In 2022, ArcelorMittal had revenues of $79.8 billion and crude steel production of 59.0 million metric tonnes, while iron ore production reached 45.3 million metric tonnes. Our purpose is to produce ever smarter steels that have a positive benefit for people and planet. Steels made using innovative processes which use less energy, emit significantly less carbon and reduce costs. Steels that are cleaner, stronger and reusable. Steels for electric vehicles and renewable energy infrastructure that will support societies as they transform through this century. With steel at our core, our inventive people and an entrepreneurial culture at heart, we will support the world in making that change. This is what we believe it takes to be the steel company of the future. ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).

For more information about XCarb® recycled and renewably produced steel, visit https://europe.arcelormittal.com/repository2/Europe/XCarb_FlatProducts_brochure.pdf

 

FAQ

What is the partnership between Vestas and ArcelorMittal about?

The partnership aims to produce low carbon-emissions steel for wind turbine towers, reducing CO2 emissions by up to 52%.

Where will the first project using low carbon-emissions steel take place?

The first project using this steel will be the Baltic Power offshore wind farm off the coast of Poland.

What is the expected CO2 reduction from using low carbon-emissions steel in the top two sections of an offshore tower?

The emissions reduction translates to a 25% reduction in emissions compared with a tower made from steel produced via the conventional steelmaking route.

How much clean electricity is the Baltic Power offshore wind farm expected to generate?

The wind farm is expected to generate up to 1.2 GW and ultimately supply clean electricity to more than 1.5 million households in Poland.

Who are the key figures in the partnership between Vestas and ArcelorMittal?

The key figures include Dieter Dehoorne, Head of Global Procurement at Vestas, and Laurent Plasman, CMO Industry, ArcelorMittal Europe – Flat Products.