Steel and steel products manufacturer Nucor announced today the launch of Econiq, its new line of net zero carbon steel products for the U.S. market. The company also announced that automotive giant GM will be Nucor’s first customer for Econiq, with shipments slated to begin early next year.
Leon Topalian, President & Chief Executive Officer of Nucor Corporation, said:
“The green economy is being built on steel, and Nucor is proving that it can be produced in a sustainable way that can help the world meet its climate goals. For more than 50 years, Nucor has been built on a sustainable model of recycling steel to produce new steel and steel products. The addition of Econiq is a logical extension to our innovation legacy in the steel industry. Further, we are pleased to announce that General Motors, an iconic American manufacturer, will be Nucor’s first customer for Econiq beginning in the first quarter of 2022.”
Steelmaking is one of the biggest emitters of CO2 globally, with total greenhouse gas emissions (GHG) from the sector accounting for between 7% and 9% of direct emissions from the global use of fossil fuels. Given steel’s heavy dependence on coal, it is also one of the most challenging sectors to decarbonize. While several initiatives have emerged recently to help address the impact of steel, most commercially viable alternatives are still at an early stage.
Nnucor uses recycled scrap-based electric arc furnace technology, which enables the company to operate at 70% below the current GHG intensity for the steel industry. Econiq will build on this practice by utilizing 100% renewable electricity and carbon offsets to negate any remaining Scope 1 and 2 emissions.
Earlier this year, GM announced a series of climate goals, including a target to achieve carbon neutrality by 2040, along with plans to reduce the impact associated with its supply chain and source more sustainable materials. The companies expect all steel purchased by GM from Nucor to be net carbon neutral by the end of 2022.
Shilpan Amin, GM Vice President of Global Purchasing and Supply Chain, said:
“We commend Nucor for their commitment to net-zero carbon steel solutions and look forward to working with them to utilize their innovative Econiq steel in our vehicles. It brings GM one step closer to its vision of a zero emissions future. General Motors is excited to be Nucor’s first customer for Econiq as we work to integrate sustainability into all aspects of our supply chain.”