ArcelorMittal | Less polluting steel in Contrecœur… if Quebec agrees to help

ArcelorMittal has discreetly tested green hydrogen at its Contrecoeur complex to replace natural gas.

Julien Arsenault
The Press

After conclusive results, the steel giant asks for help from Quebec to produce a much less polluting steel on a large scale – a project of several hundred million dollars – at a time when the rush for green hydrogen raises questions .

Carried out at the beginning of April, the test, the results of which are revealed on Monday, took place during the reduction phase of iron ore, a chemical process in which natural gas is used to remove oxygen and turn it into dumplings.

“If we annualize the test and its potential, we can think that we could annually remove a few hundred thousand tonnes of greenhouse gases (GHGs), explains the President and CEO of ArcelorMittal Long Products Canada. , Francois Perras. In our opinion, this is something that is extremely promising. »

The test removed approximately 7% of the amount of natural gas. This proportion would be much higher if the ambitions of the multinational, headquartered in Luxembourg, materialize. At the complex located in Contrecœur, the production of one tonne of steel using the reduction process emits 0.65 tonnes of GHGs.

ArcelorMittal wants green hydrogen to be produced at its facilities located in the southern suburbs of Montreal. A first phase would require a block of about 70 megawatts of electricity, according to Mr. Perras, as well as investments which have not been quantified precisely. The CEO did not specify the amount the company was seeking from the Legault government.

She recently registered with the Registry of Quebec Lobbyists to seek financial support from the Legault government, such as a “loan” or a “subsidy”. It also wants to convince Hydro-Québec to provide it with the energy requested. The duty fanned that interest last week.

Lights on the board

Highly energy-intensive, the production of green hydrogen is of particular interest to major industrial sectors wishing to reduce their GHG emissions. A major player in heavy industry, ArcelorMittal Long Products Canada is one of the main polluters in the province. The company produces 1.1 million tonnes of GHGs per year – which is nevertheless below the Canadian average of 1.4 million tonnes for steel complexes.

Since the era of surpluses is coming to an end at Hydro-Québec, the Crown corporation has already warned that it was not going to say yes to all projects over 50 MW. Why should the state-owned company agree to ArcelorMittal’s request?

A call for caution was issued with regard to green hydrogen on April 16, by Johanne Whitmore, principal researcher at the Energy Sector Management Chair at HEC Montréal, and 15 other signatories of a open letter.

The costs of this green sector are high and the supply volumes are still low, they warned. A portion of the missive, however, provided ammunition for the Quebec project of ArcelorMittal.

“Many studies point out that care must be taken to maximize the exploitation of green hydrogen fuels by focusing on the sectors […] not suitable for direct use of electricity, such as energy-intensive industries (steel, aluminum, cement), fertilizers, and the maritime and aviation sectors,” the signatories wrote.

Mr. Perras says hydrogen is only “part of the solution” to enable ArcelorMittal to continue to reduce its GHG emissions. Along with financial support, the company would like to see the levels of government favoring, in calls for tenders, products with a lower carbon footprint.

The cost of producing a ton of steel with green hydrogen is much more expensive compared to more traditional and more polluting processes.

“How can we stay competitive? asks the president of ArcelorMittal Long Products Canada. Currently, there are no barriers to entry for environmental criteria or GHG emissions. »

ArcelorMittal’s trial is part of a global strategy announced in 2020 with the aim of reducing its CO emissions by 30% in particular.₂ by the end of the decade. It also comes at a time when the Legault government is soon to unveil its green hydrogen strategy.