Several steel producers have already announced their plans for converting their BF operations to the less carbon intensive DRI/EAF technology. For the first half of 2021, many steel producers have been reporting record high revenues and operating EBITDA. The extraordinary financial results are driven by high steel prices, supply constraint issues and unprecedented government stimulus. With the growing rise of accounting for scope 1 and 2 carbon emissions, perhaps this windfall will accelerate growth in more DRI/EAF projects.
AME
estimates investments in new projects for five sites utilising DRI/EAF
technology is approximately US$8,971m. The investment projects range from 2024
to 2028 and are categorised by expected commissioning year. We note that for, one
project, Metinvest Ukraine at this stage the commissioning date is unknown.
Canada
ArcelorMittal
Dofasco and the Canada government will invest approximately US$1.44bn over the
next seven years in decarbonisation technologies at the steel facility in
Hamilton. Its current BOF with 4.2Mt of crude steel capacity will be replaced
with a 2Mt DRI facility and an EAF with crude steel capacity of 2.4Mt. The
transition is contingent on support from the governments of Canada and Ontario,
which will contribute approximately US$325m.