Steel Dynamics Sets Goal to Achieve Carbon Neutrality by 2050
Steel Dynamics Inc announced a goal to be carbon neutral by 2050 for its electric arc furnace steel mill operations. To achieve this target, the company also set interim emissions reduction and renewable energy milestones to be achieved by 2025 and 2030. On the path to carbon neutrality, Steel Dynamics is targeting a 20% Scope 1 and Scope 2 combined greenhouse gas emissions intensity reduction across its EAF steel mills by 2025 and a 50% reduction by 2030, compared to a 2018 baseline. Additionally, the company plans to increase the use of renewable electrical energy for its EAF steel mills to 10% by 2025 and 30% by 2030.
These goals expand on Steel Dynamics' existing sustainability focus, leading the steel industry for more than 25 years with its exclusive use of electric arc furnace technology, circular manufacturing model, and innovative teams creating solutions to increase efficiencies, reduce raw material usage, reuse secondary materials, and promote material conservation and recycling. Steel Dynamics plans to be a leader in this area with focus toward:
1. Identifying and implementing emission reduction projects
2. Improving energy management to reduce emissions and enhance operational efficiency
3. Increasing the use of renewable energy, including partnering with local utilities
4. Researching and developing innovative technologies
Based on International Energy Agency recommendations for the steel sector, Steel Dynamics' current steelmaking operations already fall within the 2050 intensity targets designed to meet the Paris Agreement and its 2°C scenario. Further, the company is aligned with the Science Based Targets Initiative as its EAF steel mills plan to meet the SBTi well below 2 degree Celcius scenario target for Scope 1 and 2 combined emissions intensity by at least 2030, based on the Iron & Steel Sectoral Decarbonization Approach.