06 Responsible energy user that helps create a lower carbon future

CO₂ efficiency

The global CO₂ footprint of steel is on average 50% higher than that of our steel.

The CO₂ footprint of our site in Ghent is one of the smallest in the world. This is thanks to our strongly optimised production process, on the one hand, and also thanks to our efficient use of scrap waste. What’s more, the global CO₂ footprint of steel is on average 50% higher than that of the steel produced at ArcelorMittal Gent. We continue our efforts to improve further.

Blast furnace and converter route

A blast furnace route is needed to produce flat steel products with a high added value. In our blast furnaces, we use iron ore and coal. The coal reduces the iron ore to hot metal, which is subsequently converted into liquid steel in the steel shop. The reduction of iron ore is accompanied by the formation of CO₂.

No fully-fledged alternative currently exists for using carbon as a reducing agent in the blast furnaces. By definition, manufacturing steel therefore remains CO₂ intensive. However, the CO₂ footprint of our production site in Ghent is one of the smallest in the world. This is thanks to a strongly optimised production process, on the one hand, and also thanks to our efficient use of scrap. Stronger still, every ton of steel that we produce at ArcelorMittal Belgium is 20% more environmentally friendly than a ton of steel produced elsewhere in Europe and 33% more environmentally friendly than a ton of steel produced in any other location in the world.

Did you know this?

Our finished products consist of approximately 15% of recycled scrap.

Each year, we melt approximately one million tons of scrap in the steel shop.

In addition, we are continuously carrying out new projects and investing to further reduce our CO₂ emissions.

The European Emissions Trading Scheme (ETS)

The European steel sector is governed by the European Emissions Trading Scheme (ETS). This entails that an emission allowance needs to be submitted for every ton of CO₂ emitted. The total quantity of emission allowances is restricted to an established upper limit. A proportion is allocated for free, another proportion is traded on the market, with the price being determined through supply and demand. The free allocation of CO₂ emission rights is governed by rules established by Europe and based on the specific CO₂ emission of the best performing companies (‘benchmark level’) and a historic activity level. Allowances are granted free of charge in order to avoid ‘carbon leakage’.

Although we are a benchmark in terms of CO₂ efficiency, our ArcelorMittal site in Ghent has been facing a shortage of allowances since 2015. This shortfall is increasing year on year since the allocation of the allowances is based on an activity level that is too low. Furthermore, the annual correction factor applied in conformity with the European rules imposes far greater restrictions on the quantity of allowances allocated than technically feasible. The missing allowances must be bought, which causes a considerable distortion of the competition when competing with steel plants outside Europe, compromising the further development of European steel companies.

The ETS system only applies to Europe, which may create an uneven playing field between European steel plants and their global competitors. Steel imported into Europe has a much higher CO₂ (production) footprint, whereas the non-European exporters do not need to pay for CO₂ allowances. The tons currently imported into Europe even have a larger CO₂ footprint than the steel produced at our Ghent site in 1990. We are therefore asking the authorities to treat steel imported into Europe in the same way as the European steel production, by introducing a border adjustment.

“There is a need for a level playing field. Although we are a benchmark in terms of CO₂ efficiency, our ArcelorMittal site in Ghent has been struggling with a lack of emission allowances since 2015.”

Breakthrough technologies

In addition, to further meet this challenge imposed by ETS, we are collaborating with partners on breakthrough ideas. We strongly believe in the integrated route and we wish to take a big step forward with regard to innovation and energy efficiency. In the future, we aim to recycle several other waste materials, such as wood, plastic and our own gases, in addition to scrap.

We also started construction on an installation that will convert the CO, originating from our blast furnaces, into bioethanol by means of bacteria. The feasibility of the process has already been demonstrated with pilot plants. It is anticipated that the plant will be commissioned in 2020, which will enable the production of approximately 80 million litres of bioethanol per year. This corresponds to the green energy production of 120 wind turbines.

In addition, there are numerous R&D projects and joint ventures with other sectors and research institutions that may all lead to industrial processes to further reduce the CO₂ emission of the site. However, this does not address the burgeoning shortfall of CO₂ allowances that our Ghent site will be faced with in the future.

Developing new technologies takes time. The time schedule for continued improvements, determined by ETS, does not sufficiently take this into account. In its current form, ETS will pose a threat to the survival of the European steel industry.

“We are collaborating with partners on breakthrough technologies to continue lowering our CO₂ emissions.”

We are investing

€110,000,000

in the context of the energy policy agreement.
(2015-2020)

ENERGY POLICY AGREEMENT

Our ArcelorMittal site in Ghent is one of the best in the world in terms of energy efficiency. We are also committed to retaining that position in the future. We signed the Flemish government’s energy policy agreement (EBO). Joining the EBO implies that the different processes concerned will undergo an external inspection every four years, in search of additional measures to improve energy efficiency.
Our site has already been subject to a first inspection, which pinpointed a number of measures. All of this was incorporated in an energy plan. The realisation of this energy plan is followed up each year by the Verification Office of Benchmark Flanders.

One of the requirements under the EBO is to work with an energy management system. In the interest of international demonstrability, we decided to design our energy management system pursuant to the guidelines of the international standard ISO 50001.

All departments mapped out their biggest energy consumptions, as well as the factors affecting the use. This is how ‘blind spots’ in terms of energy use came to light. As a result, all departments became more aware of their role in the overall energy picture. In addition, we made an internal comparison between various departments in order to improve the energy efficiency of our processes and plans, in order to convert the best practices into standard work methods.

On 14 January 2018, we received our ISO 50001 certificate for the first time. At the end of November 2018, we underwent the first follow-up audit ISO 50001. The auditors were very complimentary about the operation of our energy management system and our detailed monitoring systems. They also highlighted the importance of the departmental energy coordinators to raise the energy awareness throughout the whole organisation.

01/2018

On 14 January 2018, we received our ISO 50001 certificate for the first time.

11/2018

At the end of November 2018, we underwent the first follow-up audit ISO 50001. The auditors were very complimentary about the operation of our energy management system and our detailed monitoring systems. They also highlighted the importance of the departmental energy coordinators to raise the energy awareness throughout the whole organisation.

Accord de branche

In our ArcelorMittal site in Liège, we signed the ‘Accord de Branche’. Our Liège site comprises various finishing lines, situated in diverse geographical locations. By joining up to the Cooperation Agreement, we are committed to improving our energy efficiency by 2020 by 15.7% in comparison with the reference year 2005. The target was already achieved in 2014 and will be exceeded in 2020. The Walloon government performs annual check-ups to determine whether the commitment is being complied with.

Important actions

Fully renewed burners in the continuous annealing line in Tilleur, resulting in lower emission and greater heat efficiency.
Installation of five domestic boilers for the offices and changing rooms in Tilleur.

Commitment by 2020

15.7%

more energy efficiency than in 2005

already achieved in 2014

Did you know? We are investing in green electricity.

8

wind turbines

70.8 million KWH

green energy for 20,000 households/year