Ukraine’s leading steel maker Metinvest has defined its long-term objectives for the reduction of the carbon footprint of its Ukrainian assets, which continue to be the largest contributors to the company’s CO2 emissions. Currently, the work on the technological strategy and the decarbonization roadmap is in progress; however. Metinvest’s CEO Mr Yuriy Ryzhenkov in Year End update noted “The focus will be on known and proven technologies, including direct reduced iron in combination with electric arc furnaces, which, by international standards, can generate a rapid positive effect. This step-by-step approach to delivering on its objectives will help the company reduce CO2 emissions by more than 90% by 2050 and completely abolish the sinter-making process.” In the first stage, Metinvest will have EAFs. For assets in Zaporizhia and Mariupol, Metinvest has already sent out requests for technical and commercial offers to major equipment producers and waiting for the results. Mr Ryzhenkov said “I think we will complete the feasibility study in the first half of 2022, and probably, by the end of the year, we will need to make a decision about the site where we will build the first facility.For some time, the Ilyich Steel plant will continue to operate using conventional technology, but as the useful life of our blast furnaces expires, Metinvest will introduce new processes and replace the blast furnaces with DRI modules and EAFs. Mr Ryzhenkov said “Both new units will be in operation for some period of time and the sinter plant will continue to operate at Ilyich Steel. And this will be the case for almost all of the sites.Mr Ryzhenkov said “The things we can do right now are to improve the efficiency and automation of our existing processes, reduce the consumption of DRI module and an electric steelmaking facility at one of our plants either in Zaporizhia or in Mariupol. Since we are not sure that hydrogen will be economically viable by this time, we will be able to run the new complex with natural gas and therefore we will already be able to significantly reduce CO2 emissions. At the moment, we are still discussing its location, because we are not the only shareholder in Zaporizhstal, and, so far, we don't see the willingness of the other party to participate in the development of the plant. So, there is still a “fork in the road” as to whether Zaporizhstal should be an electric steelmaking plant or a cast-iron mill.”One DRI module in combination with an EAF and casting represents at least EUR 1 billion. For the construction of a plant with a capacity of 4-4.5 million tonnes of electric steel, at least EUR 2 billion will be required. In order to change the technology completely, the estimated costs will be about USD 15-20 billion over the next decade.Through K1-MET, Metinvest Polytechnic University joined the consortium of companies and institutions that are carrying out research in the field of circular economy and focusing on the recycling of metallurgical waste. Metinvest has signed a memorandum with Primetals aimed at, among other things, improving the efficiency of existing blast furnaces and reducing CO2 emissions.
Ukraine’s leading steel maker Metinvest has defined its long-term objectives for the reduction of the carbon footprint of its Ukrainian assets, which continue to be the largest contributors to the company’s CO2 emissions. Currently, the work on the technological strategy and the decarbonization roadmap is in progress; however. Metinvest’s CEO Mr Yuriy Ryzhenkov in Year End update noted “The focus will be on known and proven technologies, including direct reduced iron in combination with electric arc furnaces, which, by international standards, can generate a rapid positive effect. This step-by-step approach to delivering on its objectives will help the company reduce CO2 emissions by more than 90% by 2050 and completely abolish the sinter-making process.” In the first stage, Metinvest will have EAFs. For assets in Zaporizhia and Mariupol, Metinvest has already sent out requests for technical and commercial offers to major equipment producers and waiting for the results. Mr Ryzhenkov said “I think we will complete the feasibility study in the first half of 2022, and probably, by the end of the year, we will need to make a decision about the site where we will build the first facility.For some time, the Ilyich Steel plant will continue to operate using conventional technology, but as the useful life of our blast furnaces expires, Metinvest will introduce new processes and replace the blast furnaces with DRI modules and EAFs. Mr Ryzhenkov said “Both new units will be in operation for some period of time and the sinter plant will continue to operate at Ilyich Steel. And this will be the case for almost all of the sites.Mr Ryzhenkov said “The things we can do right now are to improve the efficiency and automation of our existing processes, reduce the consumption of DRI module and an electric steelmaking facility at one of our plants either in Zaporizhia or in Mariupol. Since we are not sure that hydrogen will be economically viable by this time, we will be able to run the new complex with natural gas and therefore we will already be able to significantly reduce CO2 emissions. At the moment, we are still discussing its location, because we are not the only shareholder in Zaporizhstal, and, so far, we don't see the willingness of the other party to participate in the development of the plant. So, there is still a “fork in the road” as to whether Zaporizhstal should be an electric steelmaking plant or a cast-iron mill.”One DRI module in combination with an EAF and casting represents at least EUR 1 billion. For the construction of a plant with a capacity of 4-4.5 million tonnes of electric steel, at least EUR 2 billion will be required. In order to change the technology completely, the estimated costs will be about USD 15-20 billion over the next decade.Through K1-MET, Metinvest Polytechnic University joined the consortium of companies and institutions that are carrying out research in the field of circular economy and focusing on the recycling of metallurgical waste. Metinvest has signed a memorandum with Primetals aimed at, among other things, improving the efficiency of existing blast furnaces and reducing CO2 emissions.
