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DOE funding makes decarbonization history

Metal Tech News - March 25, 2024

Largest industrial decarbonization investment ever in US history; will see $6 billion across 33 projects throughout the nation.

Stoking the non-emissive fires of industry once again, the U.S. Department of Energy has leveraged another significant share of Bipartisan Infrastructure Law funding to inject upwards of $6 billion into 33 projects across more than 20 states to decarbonize energy-intensive industries, reduce industrial greenhouse gas emissions, and invigorate job opportunities that will in turn revitalize local communities, all toward strengthening the United States' manufacturing capabilities.

"Spurring on the next generation of decarbonizing technologies in key industries like steel, paper, concrete, and glass will keep America the most competitive nation on Earth," said U.S. Secretary of Energy Jennifer Granholm.

The funding will focus on project areas with the highest emissions where decarbonization technologies will have the greatest impact, including aluminum and other metals, cement and concrete, chemicals, refining, iron and steel, and much more.

Initial estimates suggest that once implemented and fully realized, the projects are expected to reduce the equivalent of more than 14 million metric tons of carbon dioxide emissions each year-an amount equal to the yearly emissions of 3 million gas-powered cars.

Many of the projects will deploy first-in-the-nation emissions-reducing technologies that have the potential for sector-wide adoption and transformation, multiplying the magnitude of emissions cut and supporting the future of U.S. manufacturing.

As it stands, this funding announcement is now the largest investment in industrial decarbonization in American history.

"Thanks to President Biden's industrial strategy, DOE is making the largest investment in industrial decarbonization in the history of the United States," said Granholm. "These investments will slash emissions from these difficult-to-decarbonize sectors and ensure American businesses and American workers remain at the forefront of the global economy."

Iron and Steel

While the 33 projects span many facets of American industry, including seven chemical and refining projects, six cement and concrete projects, three food and beverage projects, three glass projects, two heat byproduct from processes projects, and one pulp and paper project, Metal Tech News is most interested in the 11 combined projects in iron, steel, aluminum, and other metals.

The six selected iron and steel projects plan to demonstrate emerging technologies, including some of the world's first hydrogen-fueled direct reduced ironmaking (DRI) facilities, which are expected to eliminate the vast majority of steelmaking emissions.

The projects will help decarbonize iron and steelmaking and enable the industry to phase out more traditional carbon-intensive production methods that typically rely on coal.

This investment is expected to help create products like high-grade steel for the automotive industry while solidifying the nation's position as the global leader in low-carbon iron and steel products.

These projects include:

Hydrogen-Fueled Zero Emissions Steel Making – Perry County, Mississippi and Montpelier, Iowa.

Up to $500 million will be invested in this project led by Swedish steelmaker SSAB as it seeks to shift toward hydrogen-based steel production. The money will be used to build the first commercial-scale facility in the world using the HYBRIT, fossil-free DRI technology with 100% hydrogen, in Perry County, MS.

Hydrogen-Ready Direct Reduced Iron Plant and Electric Melting Furnace Installation – Middletown, Ohio.

Up to $500 million will be allocated toward the installation of another hydrogen DRI plant, supplemented by two electric furnaces, led by Cleveland-Cliffs Steel Corp.

As the largest supplier of steel to the U.S. automotive industry, a downstream decarbonized steel link will better incentivize end products such as electric vehicles, wind turbine frames and blades, and other infrastructure needed to hold together low-carbon technologies.

Induction Melting Upgrade – Birmingham, Alabama.

Up to $75 million will be put toward replacing the cupola furnace at AMERICAN Cast Iron Pipe Company's Birmingham plant with four induction furnaces. This would eliminate coke combustion and reduce melt process CO2 emissions by an estimated 95%.

Iron Electric Induction Conversion – Bessemer, Alabama.

Up to $75.5 million will support a project led by United States Pipe and Foundry Company to replace its coke-fired furnaces with electric induction melting furnaces. This could potentially reduce the carbon intensity at the Alabama Works ductile iron pipe production facility by an estimated 73%.

Low-Emissions, Cold-Agglomerated Iron Ore Briquette Production – U.S. Gulf Coast.

Fronted by the largest iron and nickel producer in the world, Vale S.A. could receive up to $282.9 million to create a first-of-its-kind production facility for a viable low-emissions alternative to traditional ore pellets. Implementing this technology is expected to reduce CO2 emissions by 60%.

Steel Slab Electrified Induction Reheat Furnace Upgrade – Lyndora, Pennsylvania.

Another project led by Cleveland-Cliffs Steel Corp., this potentially $75 million in funding aims to electrify the only production facility for high-silicon grain-oriented electrical steel in the U.S.

Critical for transformers and the electricity sector at large, a rehab of the manufacturing of this material would have a widespread impact on the larger economic chain.

U.S. Department of Energy

Aluminum and copper

While decarbonizing the nation's metallic backbone is vital, the supplemental materials needed to kickstart the nation's transition to renewables are equally important.

The five selected aluminum and other metals projects include a major capital injection to decarbonize not only aluminum but also many facets of copper. As a metal recently included in another round of BIL funding, which would see $475 million split between five projects at past and present mine sites, doubling down into copper is a good sign that DOE is aware of its importance.

The recent round of funding also includes recycling potential, something the federal agency recognizes as fundamental to a green future.

These projects include:

Advanced Copper Recycling Facility – Shelbyville, Kentucky.

Up to $270 million will be apportioned for Wieland Group to use its 200 years of operational expertise to advance its state-of-the-art copper scrap metal processing technology in Shelbyville. This project will enable the recycling of more diverse copper scrap and other metals, turning it into high-purity copper suitable for supporting multiple applications, including EVs and semiconductors.

Green Aluminum Smelter – Either Kentucky or Ohio/Mississippi River Basins

Being determined for up to $500 million, perhaps the largest share of this funding, DOE has tasked Century Aluminum Company to build the first new U.S. primary smelter in 45 years in America.

Upon completion, the smelter would double the size of the current U.S. primary aluminum industry while avoiding an estimated 75% of emissions from traditional smelting due to its expected state-of-the-art, energy-efficient design and use of carbon-free energy.

The high-purity aluminum produced from this facility will then be suitable for national defense, EVs, semiconductors, building and construction, and green energy applications.

Low Carbon SmartMelt Furnace Conversion – Ravenswood, West Virginia.

This project, led by Constellium, will see up to $75 million toward the deployment of a first-of-a-kind zero-carbon aluminum casting plant at Ravenswood.

This aluminum rolling facility, one of the largest in the world, already supplies material to the aerospace, defense, marine, and transportation sectors, and with the installation of low-emission SmartMelt furnaces that will be able to operate using a range of fuels, including clean hydrogen. The effects will be felt upstream in industries using this future clean aluminum.

Nexcast Next Generation Aluminum Mini Mill – Fort Lupton, Colorado.

Up to $22.3 million will be allocated to Golden Aluminum to upgrade its facility using the Nexcast process, which will reduce natural gas consumption, improve process efficiency, and recycle 15% more mixed-grade aluminum scrap.

These upgrades will enable the facility to produce aluminum for EVs and other clean energy technologies without the deficit of heavy carbon-produced aluminum.

Zero Waste Advanced Aluminum Recycling – Wabash, Indiana.

Real Alloy Recycling may see up to $67.3 million to construct the first zero-waste salt slag recycling facility in the U.S., considered the most energy-efficient facility of its kind.

With roughly 95% of secondary aluminum waste ending up in landfills, the project aims to build a processing plant on the back end of an existing aluminum recycling facility and enable the normally thrown-away salt slag components to be recycled back into the circuit.

 

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