ArcelorMittal Mining Canada (AMMC) has announced a CAD$205 million investment in its Port-Cartier pellet plant. The company plans to convert the facility in its entirety to direct reduced iron (DRI) pellets by the end of 2025.
The investment, in which the Quebec government will contribute through an electricity rebate of up to CAD$80 million, will enable the Port-Cartier plant to become one of the world’s largest producers of DRI pellets, the raw material feedstock for ironmaking in a DRI furnace. The project includes the implementation of a flotation system that will enable a significant reduction of silica in the iron ore pellets, facilitating the production of a very high-quality pellet, it is claimed.
The project will deliver a direct annual CO2e reduction of approximately 200kt at AMMC’s Port-Cartier pellet plant, equivalent to over 20% of the pellet plant’s total annual CO2e emissions. This reduction will be achieved through a reduction in the energy required during the pelletising process.
“This project has an important role to play in our efforts to reduce our group’s CO2e emissions intensity by 25% by 2030, and our longer-term ambition to reach net zero by 2050."
Aditya Mittal, CEO of ArcelorMittal.
The project will deliver a direct annual CO2e reduction of approximately 200kt at AMMC’s Port-Cartier pellet plant, equivalent to over 20% of the pellet plant’s total annual CO2e emissions. This reduction will be achieved through a reduction in the energy required during the pelletising process.
“This project has an important role to play in our efforts to reduce our group’s CO2e emissions intensity by 25% by 2030, and our longer-term ambition to reach net zero by 2050,” said ArcelorMittal’s CEO, Aditya Mittal. “Not only does it deliver a significant reduction in our emissions at AMMC, but it also expands our ability to produce high-quality direct reduced iron pellets, which we will need in significant volumes as we transition to DRI-EAF steelmaking at our steel plants in Canada and Europe,” he added.
A DRI plant uses natural gas to reduce iron ore, resulting in a significant reduction in CO2 emissions compared with coal-based blast furnace iron making. In Hamburg, Germany, ArcelorMittal is trialing replacing natural gas with hydrogen to make DRI, with its industrial scale pilot project anticipated to be commissioned before the end of 2025. The DRI installations the company has announced it is developing in Belgium, Canada and Spain are all being constructed to be hydrogen-ready, so as and when green hydrogen is available in sufficient quantities at affordable prices the company can produce DRI with near zero-carbon emissions.
Approximately 250 jobs are expected to be created during the construction phase of the project in Port-Cartier, which is scheduled to be begin mid-2023 and complete before the end of 2025.