Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

ArcelorMittal has committed to becoming carbon neutral across all its group companies by 2050. The new commitment is based on its 2019 pledge to trim emissions at ArcelorMittal Europe by 30pc by 2030 and achieve carbon neutrality by 2050.


Aditya Mittal, president and chief financial officer, said in a press release on Wednesday, that all aspects of the global economy will need to play a role to reach the goal of net-zero carbon dioxide emissions by 2050. The steelmaker said it was taking charge in driving the mission to cut carbon during steel production that currently contributes towards substantial CO2 emissions. 


Steel, as a central material, will require the use of cleaner approaches during production, while the company faces the challenge to stay globally competitive, Mittal said. The steelmaker is testing the use of hydrogen in Europe, to lessen iron ore while making DRI as well as trying out zero-carbon DRI in its EAF during the steelmaking process. 


Since hydrogen use is an expensive proposition, the company is also examining other methods to cut its emissions. It is investigating two approaches that include the hydrogen DRI method planned to begin in 2023, and a method referred to as smart carbon that will modify the blast furnace process to catch carbon emissions. The second project is set to begin in 2022.


The smart carbon route is expected to bring results sooner, while the hydrogen DRI method will be less important until 2030 due to the expenses involved, the steelmaker indicated. A second climate action report will be provided by the end of this year in which the company will offer additional detail of its 2050 net-zero targets.


ArcelorMittal operates in 60 countries with primary steelmaking operations in 18 countries. The company’s crude steel and iron ore production totaled 89.8mn mt and 57.1mn mt, respectively, in 2019.

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