Metinvest aiming to cut carbon emissions by 40% by 2040 – reports

Ukraine’s largest national steelmaker, Metinvest, plans to cut its greenhouse gas emissions by 15% by 2030, and by 40% by 2040, according to media reports

In 2020, the company’s direct greenhouse gas emissions, excluding associates and joint ventures, was 23.2 million tonnes of direct carbon dioxide (CO2) equivalent, according to Metinvest’s website.

The company will start replacing blast furnaces (BFs) with electric-arc furnaces (EAFs) in 2028 when it expects to have ramped up production at its direct-reduced iron (DRI) module, according to a report by Reuters.

Speaking at Fastmarkets’ Middle East Iron & Steel (MEIS) event in December, Metinvest sales director Dmitriy Nikolayenko said: “[Steelmaking using EAFs] emits carbon but it in smaller volumes than BF and basic oxygen furnace-based producers. But there is a problem in changing to EAF-based steelmaking [is that the] world requires more steel than we can produce from collected scrap, so we need more new iron to satisfy global steel demand.”

DRI can be used to substitute or complement scrap in EAFs, and while DRI-based production emits CO2, it is much lower than the amount produced by BFs.

“We are considering substituting existing BFs with DRI modules,” Nikolayenko said, adding that Metinvest was considering different locations for DRI modules.

Nikolayenko said Metinvest would also start a flotation project at its Severny GOK mining and beneficiation plant, with the aim of producing 12 million tonnes per year of high-grade concentrate to be used as a feed for DR-grade pellet production, needed for making DRI. 

The Severny facility will have the capacity to produce about 2.67 million tpy of both DR- and blast furnace-grade pellets, Fastmarkets understands.

Metinvest already produces DR pellets at its Central GOK site, which has capacity to make 2.25 million tpy of pellets.

What to read next
Amid inflation and a global economic slowdown, BHP's outlook for the steel industry in China, the world's largest steel producer, has become less optimistic
The publication of Fastmarkets’ US and Brazil pig iron price assessments for Friday Feb 23 were delayed because of an administrative error.
Fastmarkets is inviting feedback from the industry on the pricing methodology for its steel billet import, cfr Manila, $/tonne, assessment, as part of its announced annual methodology review process.
Despite auto manufacturers' clear demand and willingness to pay a premium for green steel, understanding of the product varies widely in the industry, with larger OEMs like Ford, General Motors, and Volvo actively competing for its limited supply
Amid record volumes of imports, the Brazilian paper industry has joined steelmakers in requesting up to 25% import tariffs for certain products, which has worried importers and end users. In the wake of the Brazilian steel sector’s pleas in 2023, the Brazilian Tree Industry Association (Ibá) requested on January 16 that the government increase import duties […]
Trading activity for pellet feed imported into China increased in the week to Friday January 19, with more tenders from Australia. The pellet feed premium, however, continued to face downward pressure from uncertain demand outlook among market participants, sources told Fastmarkets