Aker Solutions pens green steel deal
March 29, 2023
“Aker Solutions is proud to join the First Movers Coalition to support demand for emerging technologies essential for a net-zero transition”, said Kjetel Digre, CEO at Aker Solutions. Decarbonizing the steel sector is key to reaching the world’s climate goals.
The emissions-cutting work of the steel sector will require substantial investment. By combining purchasing power and making early commitments, the FMC sends a strong signal that these investments are welcomed by the market.
“As part of our climate action plan, we work continuously and systematically to not only improve our own carbon accounting but to influence and contribute to a material difference throughout the value chain”, said Digre.
Launched at COP26, FMC is a global initiative led by the World Economic Forum and the U.S. Department of State. It has brought together more than 60 companies worldwide to build early markets for clean technologies.
“We are honored to welcome Aker Solutions into the coalition,” said Nancy Gillis, Head of the First Movers Coalition.
“With its bold ambitions for the energy transition, we believe Aker Solutions has a lot to bring to the FMC. We look forward to working together to decarbonize supply chains and accelerate the transition to a net-zero future.”
FMC aims to decarbonize hard-to-abate industrial sectors that currently account for 30 percent of global
emissions. The steel industry alone accounts for about eight percent of world emissions, according to the World Economic Forum.
By joining the FMC, Aker Solutions commits to buying at least 10 percent (by volume) of our steel from low-emissions sources by 2030, subject to the availability of technology that enables companies to meet their 2030 purchase pledges.
First order
The FMC agreement coincides with an Aker Solutions frame agreement for steel with Salzgitter Mannesmann International, Ilsenburger Grobblech and Salzgitter Mannesmann Grobblech.
The agreement includes a first batch of about 100 tonnes of low-carbon-dioxide steel.
This recycled steel is produced with green energy and will be utilized on a renewable-energy project off the coast of the UK. Standard steel production generates emissions of about 2.3 tonnes of CO2 per tonne of steel. Recycled green steel emits 0.36 tonnes of CO2 per tonne of steel.
It is expected, that by the end of 2025, the Salzgitter Group will have available their SALCOS® hydrogen-or-gas, iron-ore reduction tech. By early 2033, the Group will be able to deliver of 1.5 million tonnes of green steel, although smaller volumes of steel — recycled using renewable energy — are already available.
To further strengthen our strategic position with respect to green steel, Aker Solutions is in dialogue with several potential green-steel partners.