US-based steel producer and metals recycler Steel Dynamics announced today a series of new sustainability goals, aiming to address the climate impact of steelmaking, including a target to achieve carbon neutrality in its electric arc furnace (EAF) steel mill operations by 2050.
Steel Dynamics is also targeting 20% Scope 1 and 2 greenhouse gas (GHG) emissions cuts in its EAF mills by 2025, a 50% reduction by 2030, and aims to increase the use of renewable electrical energy for its EAF steel mills to 10% by 2025 and 30% by 2030.
Steelmaking is one of the biggest emitters of CO2 globally, with total greenhouse gas emissions (GHG) from the sector accounting for 7% – 9% of direct emissions from the global use of fossil fuels.
Steel produced using electric arc furnace technology uses recycled ferrous scrap as the primary raw material, and does not require the smelting of virgin iron ore or the burning of coal, generating substantially lower levels of carbon emissions with less energy intensity relative to traditional blast furnace steelmaking technology.
According to Steel Dynamics, the company’s current steelmaking operations already fall within the 2050 intensity targets designed to meet the Paris Agreement and its 2°C scenario, and its EAF steel mills plan to meet the Science Based Targets initiative’s (SBTi) “well below 2°C” scenario target for Scope 1 and 2 combined emissions intensity by at least 2030.
Mark D. Millett, Chairman, President and Chief Executive Officer, said:
“Our commitment to all aspects of sustainability is embedded in our founding principles – valuing our teams, our partners, our communities, and our environment. As evidence of our ongoing commitment, our Scope 1 and Scope 2 emissions are already among the lowest in the industry. We are embarking on a path to carbon neutrality from a position of strength – and we are committed to the continued reduction of our environmental footprint.”
On the path to reaching its environmental sustainability goals, Steel Dynamics will focus on identifying and implementing emission reduction projects, improving energy management to reduce emissions and enhance operational efficiency, increasing the use of renewable energy, and researching and developing innovative technologies.
“Steel is a vital resource in building a sustainable future. With these new targets and a proven track record of progress, we are demonstrating that steel must continue to play a critical role in the ‘green’ transition.”