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Steel Dynamics sets goal to become carbon neutral by 2050

The company says it plans to introduce emission reduction projects, improve energy management and increase the use of renewable energy.

Steel Dynamics Inc. (SDI), a steel producer based in Fort Worth, Indiana, has announced plans to become carbon neutral by 2050 across its electric arc furnace (EAF) steel mill operations. To achieve this target, the company also set interim emissions reduction and renewable energy milestones to be achieved by 2025 and 2030.

According to a news release from SDI, the company is aiming for a 20 percent scope one and scope two combined greenhouse gas (GHG) emissions intensity reduction across its EAF steel mills by 2025 and a 50 percent reduction by 2030 compared with a 2018 baseline. Additionally, SDI says it plans to increase the use of renewable energy at its mills to 10 percent by 2025 and 30 percent by 2030.

SDI says it plans to focus on:

  • identifying and implementing emission reduction projects;
  • improving energy management to reduce emissions and enhance operational efficiency;
  • increasing the use of renewable energy, including partnering with local utilities; and
  • researching and developing innovative technologies.

“Our commitment to all aspects of sustainability is embedded in our founding principles — valuing our teams, our partners, our communities and our environment,” says Mark D. Millett, chairman, president and CEO of Steel Dynamics. “As evidence of our ongoing commitment, our Scope 1 and Scope 2 emissions are already among the lowest in the industry. We are embarking on a path to carbon neutrality from a position of strength—and we are committed to the continued reduction of our environmental footprint.”

Based on International Energy Agency recommendations for the steel sector, SDI says its current steelmaking operations already fall within the 2050 intensity targets designed to meet the Paris Agreement and its 2 degrees C scenario. Furthermore, the company says it has aligned with the Science-Based Targets Initiative (SBTi) and plans to meet the SBTi “well below 2 degrees C” scenario target for scope one and two combined emissions intensity by 2030, based on the Iron & Steel Sectoral Decarbonization Approach. 

“Steel is a vital resource in building a sustainable future,” Millett says. “With these new targets and a proven track record of progress, we are demonstrating that steel must continue to play a critical role in the ‘green’ transition.”