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Decarbonising steel

ArcelorMittal Sestao delivers first XCarb® recycled and renewably produced flat steel

ArcelorMittal Europe – Flat Products has delivered the first coils of XCarb® recycled and renewably produced steel to Grupo Arania, a leading steel re-roller based in Spain. The shipment marks the first time that a low-carbon flat steel product has been successfully trialled and produced by ArcelorMittal Europe – Flat Products.

Cesar Quintana (CMO Iberia, ArcelorMittal Europe - Flat Products) and Carmelo Bilbao (Vice-President of the Arania Group) welcome the first XCarb® recycled and renewably produced coils [Copyright Mikel Cerrato, ArcelorMittal]

The coils were manufactured at ArcelorMittal’s mill in Sestao (Spain) using a high proportion of recycled scrap steel and 100-percent renewable electricity in an electric arc furnace (EAF). The manufacturing process results in 532 kilograms of CO2 per tonne of hot rolled coil on a life cycle basis[1]. This is approximately 75% lower than conventional coils produced via the blast furnace route.

“The availability of locally produced steel with a lower CO2 footprint gives a major boost to efforts to decarbonise our industry,” notes Carmelo Bilbao, Vice President of Grupo Arania. “As a leading company which supplies the automotive sector, Arania considers that this is the right way to proceed. The interest our customers have shown in this offer confirms that we are on the right path.”

Meeting demand for low-carbon steel

“We are working hard to provide customers with the low-carbon solutions that they are asking us for,” says Yves Koeberlé, CEO, ArcelorMittal Europe – Flat Products. “This successful trial marks the beginning of a new era for the production of flat steel by ArcelorMittal Europe.”

An event was recently held at Arania’s facility in the north of Spain to mark the arrival of the first XCarb® recycled and renewably produced steel. The event was attended by Grupo Arania management and ArcelorMittal Europe – Flat Products representatives from CMO Iberia.

“ArcelorMittal is a reference steel supplier for Arania,” explains Carmelo Bilbao. “Their XCarb® recycled and renewably produced offer is closely aligned with our own decarbonisation strategy. Ultimately decarbonisation will be a long journey, but one that is for the good of humanity. We are happy to start that journey in the hands of one of the world’s leading steel producers.”

Renewable energy use verified

To produce its XCarb® recycled and renewably produced steels, ArcelorMittal purchases ‘Guarantees of Origin’ (GoOs). “GoOs are documents which verify that a given amount of renewable electricity, equal to the amount consumed by ArcelorMittal, has been produced and supplied to the grid,” notes Yves Koeberlé. “To substantiate our CO2 content claim, ArcelorMittal offers its XCarb® recycled and renewably produced steels with a product carbon footprint declaration. That declaration is verified by an independent third party.”

“Today our customers have the option of buying XCarb® green steel certificates which allow them to decarbonise their supply chain, or low carbon-emission steels such as the hot-rolled coils we have produced in Sestao for Arania,” notes Yves Koeberlé.

Work to scale-up production in Sestao is planned to ensure more XCarb® recycled and renewably produced steels are available for customers. “Our non-EAF plants in Europe are also working to ramp-up their CO2 emission savings to generate more XCarb® green steel certificates in 2022,” says Yves Koeberlé. “We are proud of our ambitious decarbonisation plans. They recognise the role ArcelorMittal must play in reducing global CO2 emissions while highlighting the vital role steel has to play in a net-zero world.”

ArcelorMittal has set a 2030 global carbon emission reduction target of 25 percent, and a 35 percent carbon emission reduction target for its European operations. All targets are on a Scope 1 and 2 basis. The company also has set the goal of becoming net zero by 2050.

About Grupo Arania

Established in 1940, Grupo Arania is a leading manufacturer of rolled steel strips, welded steel tubes, and profiles for shelving and racking systems. Grupo Arania operates five production plants and employs more than 850 people. Around 80 percent of the company’s output is exported to more than 50 countries around the globe.

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Representatives from ArcelorMittal Europe – Flat Products and Grupo Arania at the arrival ceremony [Copyright Mikel Cerrato, ArcelorMittal]

About XCarb® recycled and renewably produced

The XCarb® recycled and renewably produced label was developed for steels produced in an EAF using recycled steel and renewable energy. Until now this has only been possible at ArcelorMittal Europe – Long Products plants which produce steel for applications such as sheet piles or sections used in the construction industry.

The customer trials at ArcelorMittal Sestao mark an initial step in the mill’s journey to become the world’s first full-scale zero carbon-emissions steel plant by 2025. In this timeframe, production will also increase to around 1.6 million tonnes annually.

More information

Click here for more information on XCarb®

[1] Environmental Product Declaration (EPD) method as per ISO 14025 and EN 15804. Covers the ‘cradle to gate’ product life cycle stages including raw material supply, upstream transport, and steel manufacturing.