In the United States (US), iron and steel major Nucor Corporation (Nucor) has announced that it has signed an agreement with compatriot ExxonMobil Low Carbon Solutions, part of global oil, gas, and energy major ExxonMobil Corporation (ExxonMobil) to capture, transport, and store carbon from the company's direct reduced iron (DRI) plant in Convent, Louisiana (LA).
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ExxonMobil will capture up to 800 000 tonnes per annum of carbon dioxide (CO2) from the DRI plant and store the CO2 at an ExxonMobil-owned facility in Louisiana.
This transformative CCS project with ExxonMobil is a key part of our decarbonization strategy and will result in some of the lowest embodied carbon DRI or HBI in North America. We are taking a multi-faceted approach to decarbonization, and this partnership builds on previous investments we have made in a carbon-free iron start-up, renewable energy generation, and the development of small modular nuclear reactor technology, said Leon Topalian, Chair, President, and CEO of Nucor.
The project is expected to start in 2026 and supports Louisiana’s objective of reaching net-zero CO2 emissions by 2050.
This collaboration with Nucor is the latest example of how we’re delivering on our mission to help accelerate the world’s path to net zero. We look forward to applying our technology and expertise to reducing emissions for Nucor, said Dan Ammann, President of ExxonMobil Low Carbon, ExxonMobil.
Scrap metal recycling
With its recycling-based production method, Nucor is already one of the cleanest steelmakers in the world.
According to the company, the circular nature of remelting recycled scrap in electric arc furnaces means that Nucor’s steel mills generate roughly two-thirds less than the CO2 of extractive blast furnace steelmaking plants, even when accounting for Scope 3 emissions, which include all upstream and downstream emissions in the supply chain.
Nucor is one of the first steel companies to disclose its Scope 3 emissions. This carbon capture and storage agreement with ExxonMobil furthers Nucor’s status as a sustainability leader and builds on the innovation that has enabled the company to produce steel and steel products with low embodied carbon.