ArcelorMittal and Veolia to modernize energy production at Fos-sur-Mer plant
ArcelorMittal Méditerranée and Veolia, through its subsidiary Veolia Industries Global Solutions, have announced the creation of a joint venture (JV) to modernize the energy production plant at Fos-sur-Mer steel mill in France and to increase the site’s environmental performance by optimizing the recovery of energy from steelmaking gases and reducing carbon dioxide (CO2) emissions.
With an annual production capacity of 4.6 million tonnes of steel, Fos-sur-Mer is one of the largest ArcelorMittal production sites in Europe. The plant specializes in the production of hot-rolled coils. The investments required to renovate the energy installations, estimated at EUR 190 million over three years, will be made by the joint venture (JV), equally owned by ArcelorMittal Méditerranée and Veolia Industries Global Solutions.
Veolia Industries Global Solutions has been developing integrated solutions for industrial companies for more than 20 years, providing them with its know-how in all the Group’s businesses (water, energy and waste) and helping its customers throughout the process of setting up major projects that also require its technical, financial engineering and social expertise.
These investments mainly relate to the furnaces, rotating machinery and auxiliary equipment and aim to improve the recovery of the steelmaking gases resulting from the manufacturing process, in the form of steam, electricity and compressed air, intended to supply the blast furnaces and all the steel production installations.
The operation and maintenance of this plant will be entrusted to Veolia Industries Global Solutions for a period of 15 years and will generate revenue of about EUR 450 million over that period. All the plant’s operational personnel, consisting of about 105 people, will join Veolia Industries Global Solutions in the context of the joint venture.
This is a project of vital importance for the future of the site. The objective of this partnership is to achieve an average electricity production capacity of 700 GWh per year, which represents half of the total consumption of the plant and is equal to the electricity consumption of a city with 100 000 inhabitants, explained François Sgro, Industrial Director Arcelor-Mittal Méditerranée.
According to the statement, ArcelorMittal Méditerranée selected Veolia Industries Global Solutions after a long period of consultation with technical staff aimed at optimizing the operation of the production assets and thus contributing to the improvement of the Fos-sur-Mer site’s competitiveness. The agreement also aims to enhance the site’s environmental performance by optimizing the recovery of energy from the steelmaking gases and reducing CO 2 emissions.
In order to respond to the priorities of ArcelorMittal Méditerranée, we have proposed an economic and contractual model that will enable us to take new initiatives to ensure the reliability of the installations, thus contributing to improving the availability of production capacity at the Fos-sur-Mer site. In the context of this partnership, we are very pleased to be welcoming staff with a high level of professionalism whose areas of expertise completely match those of Veolia Industries Global Solutions, said Pierre Rellet, Chief Executive Officer of Veolia Industries Global Solutions.
ArcelorMittal is a global steel and mining major, with around 199 000 employees, a presence in 60 countries and an industrial footprint in 18 countries. The company is a leading supplier of quality steel in the major global steel markets including automotive, construction, household appliances and packaging, has R&D and distribution networks. In 2017, ArcelorMittal had revenues of US$68.7 billion and crude steel production of 93.1 million tonnes, while own iron ore production reached 57.4 million tonnes.
In France, ArcelorMittal has over 15 800 employees at 40 production sites, distribution and service centres and four R&D centres. In 2017, ArcelorMittal produced 11 million tonnes of liquid steel in France, which also represents 32 percent of ArcelorMittal’s flat steel production in Europe. ArcelorMittal Méditerranée has two production sites: Fos-sur-Mer, an integrated site with 2 500 employees and 1 500 co-contractors producing nearly 200 grades of steel, and Saint-Chély d’Apcher, a site employing 200 people and specializing in the production of high-end electrical steels.