Steel Dynamics announces partnership to reduce greenhouse gas emissions

Steel Dynamics Inc. (SDI), Fort Wayne, Indiana, has announced the creation of a strategic joint venture with Aymium, a producer of renewable biocarbon products based in Oakdale, Minnesota.  

According to a news release, SDI owns 55 percent of the joint venture, with Aymium owning the remaining 45 percent. The entity will operate under the name SDI Biocarbon Solutions LLC. Initial plans for the joint venture include construction and operation of a biocarbon production facility to supply SDI's electric arc furnace steel mills with a renewable alternative to fossil fuel carbon using Aymium's patented technology.  

The initial facility's production capability is expected to be more than 160,000 metric tons per year, for an estimated capital investment of $125 million to $150 million. The facility is planned to begin operations in late 2023. 

"We are proud to help accelerate our collective goal to reduce greenhouse gas emissions through this further partnering with Aymium," says Mark D. Millett, chairperson, president and CEO of SDI. "We believe this strategic joint venture will significantly reduce our steelmaking greenhouse gas emissions, which are already materially lower than our global competitors, in a cost-effective manner. We also believe Aymium's process can provide a renewable fossil fuel carbon alternative for Iron Dynamics, our proprietary ironmaking operations.” 

The company says it successfully trialed Aymium's biocarbon product in its steel operations and conservatively estimate this first facility will reduce its Scope 1 steelmaking greenhouse gas emissions intensity between 20 and 25 percent, with potential upside from the use of the facility's biogas.  

"Our mission is to accelerate the transition away from fossil fuels and reduce the impact on the environment," says James Mennell, Aymium CEO. "Aymium's renewable biocarbon products allow for immediate replacement of fossil fuels with renewable, carbon-negative inputs, without the need to modify existing manufacturing processes or equipment."