Energy Efficiency, GHG Emissions, Industrial - October 11, 2024
Steel Dynamics Sets Emissions Goals
Steel Dynamics, Inc. announced certified science-based GHG emissions intensity targets for its steel mills.
The steel producer set a 2050 emissions intensity target of 0.12 metric tons of CO2e per metric ton of hot rolled steel produced. The company also set an interim 2030 emissions intensity target of 0.80 metric tons of CO2e per metric ton of hot rolled steel produced, representing a 15% reduction compared to the company's 2022 base year. These GHG emissions targets were established using the Global Steel Climate Council's (GSCC) Steel Climate Standard.
The GSCC provides science-based target certifications that are aligned with the Paris Agreement's goals and with the International Energy Agency's Net Zero by 2050: A Roadmap for the Global Energy Sector. The GSCC's Steel Climate Standard measures key steelmaking GHG emissions through hot rolling including Scope 1, Scope 2 and upstream Scope 3 emissions categories.
The company's announced science-based GHG emissions intensity targets and 2022 base year data have been verified by a third-party, KERAMIDA, and certified by the GSCC.
"Steel Dynamics is already a leader in producing lower-carbon steel products," said CEO Mark D. Millett in a statement. "In 2023, we achieved our previously announced 2025 GHG emissions intensity and renewable electrical energy goals ahead of schedule. Even though our emissions are already among the lowest in the industry, we are committed to further reducing our carbon impact and have an actionable path forward. As evidence of our dedication to this ongoing effort, among other projects, we are investing in an over $260 million biocarbon production facility that we expect will further decrease our Scope 1 emissions by as much as 35%."
In 2023, the company began construction of the biocarbon production facility located in Columbus, Mississippi. This biocarbon is a renewable and sustainable source of carbon that will be used as a replacement for anthracite in the company's steelmaking operations. The facility is projected to begin commissioning in the first quarter of 2025.
The company also signed a renewable product purchase agreement in North America in 2023 that is equivalent to approximately 15% of the company's steel mills' electricity usage in 2023. This wind energy center began commercial operation in the first quarter of 2024.
Steel Dynamics also plans to identify and implement GHG emissions reduction projects; improve energy management to reduce GHG emissions and enhance operational efficiency; increase the use of renewable and nuclear energy, including partnering with utilities; and research, develop and implement innovative technologies.
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