ArcelorMittal's (MT) Torero Plant Powers Up With Bio-Coal
ArcelorMittal MT commissioned its Torero plant, designed to convert waste wood into bio-coal, a pivotal development in the steelmaking process at its Gent site. On Dec 18, the first bio-coal produced via torrefaction was successfully utilized in the Gent blast furnace. This groundbreaking initiative is projected to curtail annual carbon emissions from the facility by an impressive 112,500 tons by replacing fossil coal with this sustainable alternative.
The Torero plant is slated to convert 88,000 tons of waste wood into 37,500 tons of bio-coal annually. The utilization of bio-coal in the blast furnace will generate biogas, a resource slated for capture and conversion into ethanol at ArcelorMittal Gent's Steelanol facility. Marked as Europe's initial carbon capture and utilization (CCU) project, Steelanol commenced industrial ethanol production last month, marking significant progress toward the facility's full operational status.
The resulting ethanol holds the potential to serve as a fundamental ingredient for various chemical products, spanning transport fuels, paints, plastics, clothing and even fragrances, contributing substantially to the chemical sector's decarbonization efforts.
This innovative Torero project received backing from the European Union's Horizon 2020 Research and Innovation Framework Program. The project consortium involves key stakeholders across the value chain, encompassing industry giants like ArcelorMittal along with expert research entities like Joanneum Research, University of Graz and Chalmers Technical University, alongside Perpetual Next (formerly TorrCoal), the pioneers behind the carbonization process technology.
Aligned with ArcelorMittal Europe's ambitious goals, the company aims to slash CO2 emissions by 35% by 2030, eventually striving for carbon neutrality by 2050. This groundbreaking initiative marks a significant leap forward in their pursuit of sustainable, environmentally conscious steel production.
Shares of ArcelorMittal have gained 7.1% in the past year compared with a 32.1% rise of the industry.
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ArcelorMittal anticipates 1-2% year-over-year growth in global steel consumption (excluding China) for 2023. The company maintains a positive outlook on steel demand in the medium to long term. Capital expenditures for 2023 are projected in the range of $4.5-$5 billion. Strategic projects are expected to contribute an additional $1.3 billion in normalized EBITDA.
ArcelorMittal Price and Consensus
ArcelorMittal price-consensus-chart | ArcelorMittal Quote
Zacks Rank & Key Picks
ArcelorMittal currently carries a Zacks Rank #3 (Hold).
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