Trinidad steel mill to be resurrected

The plant is claimed to be one of the largest steel mills in the Americas pairing low carbon emissions, natural gas-based Direct Reduced Iron (DRI) technology with Electric Arc Furnaces for steelmaking. Originally constructed in 1980, the plant deployed cutting edge technology at the time which was renewed by continuous investment over the years. Initial refurbishment and restart of the plant is expected to cost between US$150-200 million (TT$1-1.4 billion) over the next 24 months with further investment required thereafter.

Currently, 70% percent of the world’s steel is made using traditional coal-based blast furnaces that emit 2.0 to 2.5 tonnes of CO2 per tonne of steel produced. The remaining 30% is made using electric arc furnace technology (0.8 to 1.5 tonnes of CO2 per tonne), primarily fed by recycled/scrap steel and/or low carbon emission Direct Reduced Iron, as at Point Lisas.

Direct Reduced Iron is produced from iron ore smelted with natural gas and/or hydrogen which has lower carbon emissions than coal-based technologies. The plant historically used natural gas but TTIS plans to transition to green hydrogen in the coming years as it becomes commercially available. This, it is claimed, will reduce the plant’s carbon intensity to 0.4 tonnes of CO2 per tonne of steel produced.

More than 1,000 jobs will be created during the refurbishment and start-up phase and, when fully operational, the plant will create long-term employment for 500 skilled workers . TTIS believes that the restart of the plant will indirectly create many more jobs – for instance through maintenance and construction services, port services, downstream manufacturing (rebar, fencing and so on), demand for green hydrogen and renewable energy.

Steel industry veteran Gus Hiller, founder, president and CEO, spent six years of his career on the Point Lisas estate at the helm of Nucor and has managed and operated steel plants across United States of America and Canada.

Hiller commented: “We believe there is great potential for the plant to return to the forefront of global steelmaking technology and performance. Our team was drawn to Trinidad and Tobago due to its strategic location, skilled workforce, potential to be a hydrogen leader and an enabling business environment. We are confident we will be able to bring on stream and operate an efficient, cutting-edge steel mill which we expect and hope will start production within the next 12 to 18 months; certainly, no later than December 2024. The restart of this plant will create a long-term sustainable industry that generates secure employment and wealth for the citizens of Trinidad & Tobago for generations to come.”

Joel “Monty” Pemberton, chairman of TTIS, said: “The restart of the local steel industry continues the vision of the Trinbagonian pioneers who conceived it, and we are enhancing this vision with the full use of green hydrogen in the shortest possible time frame; this is the fuel of the future. TT Iron is passionate about the development of the downstream manufacturing sector of higher value iron and steel products in Trinidad & Tobago, this will further increase employment and wealth creation in the country. Our ESG principles are anchored in producing lower carbon products, the promotion of entrepreneurial activity in Trinidad & Tobago through the development of the downstream manufacturing sector, establishing an apprenticeship programme for youth development, thereby creating sustainable employment for generations in the clean energy industry”.

Commenting on the acquisition, liquidator Christopher Kelshall said: “I am thrilled to see this asset being acquired by a company focused on the development of Trinidad & Tobago, especially with the future use of green hydrogen. The investment by experienced industry veterans, will see Trinidad & Tobago continue to be a credible player in the global steel industry. Further, this investment represents a significant step to continue to diversify the downstream energy industry in Trinidad and Tobago.”

TT Iron was represented by the law firm Dentons. Attorney Shalini R. Campbell, Managing Partner - Trinidad and Tobago, led the transaction and was supported by Rachel Welch-Phillips, Partner - Corporate Commercial | Head of ESG & Sustainable Finance. Both are Directors on the Board of TTIS along with Chairman Pemberton, underscoring the Company’s commitment to sustainable development and good environmental and social governance.