GSCC certifies first steelmaker’s GHG emissions intensity targets

Steel Dynamics Inc. (SDI), an electric arc furnace steelmaker headquartered in Fort Wayne, Indiana, has announced science-based greenhouse gas (GHG) emissions intensity targets for its steel mills, making it the first steel producer with Corporate Average Steel Emissions Intensity (CASEI) base year emissions and Science-Based Emissions Targets (SBET) certified by the Global Steel Climate Council (GSCC).

The GSCC says targets are considered “science-based” if they align with the latest climate science necessary to meet the goals of the Paris Agreement – limiting global warming to 1.5 C above pre-industrial levels.

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The GSCC Steel Climate Standard, adopted in August 2023 as a global standard to measure and report steel carbon emissions, provides a framework for members to seek third-party verified certification of the emissions intensity of facility-specific products and to self-audit these emissions yearly to demonstrate continuous decarbonization progress.

SDI set a 2050 emissions intensity target of 0.12 metric tons of CO₂ e per metric ton of hot-rolled steel produced. The company also set an interim 2030 emissions intensity target of 0.80 metric tons of CO₂ e per metric ton of hot-rolled steel produced, representing a 15 percent reduction compared with the company’s 2022 base year.

The GSCC provides science-based target certifications aligned with the Paris Agreement’s goals and with the International Energy Agency’s Net Zero by 2050: A Roadmap for the Global Energy Sector. The GSCC’s Steel Climate Standard measures key steelmaking GHG emissions through hot rolling, including Scope 1, Scope 2 and upstream Scope 3 emissions. The company’s announced science-based GHG emissions intensity targets and 2022 base year data have been verified by Indianapolis-based KERAMIDA, a global sustainability and environmental health and safety services company, and certified by GSCC.

“As GSCC steel producers begin to publish their interim and long-term emissions reduction targets, their ambition and commitment toward achieving the IEA’s 2050 net zero goal will accelerate,” says Adina Renee Adler, GSCC executive director. Our certification recognizes Steel Dynamics for its leadership on decarbonization and taking a forward-leaning approach to continue cutting emissions across the company.”

“Steel Dynamics is already a leader in producing lower-carbon steel products,” says Mark D. Millett, SDI chairman and CEO. “In 2023, we achieved our previously announced 2025 GHG emissions intensity and renewable electrical energy goals ahead of schedule. Even though our emissions are already among the lowest in the industry, we are committed to further reducing our carbon impact and have an actionable path forward. As evidence of our dedication to this ongoing effort, among other projects, we are investing in an over $260 million biocarbon production facility that we expect will further decrease our Scope 1 emissions by as much as 35 percent.”

In 2023, the company began constructing a biocarbon production facility in Columbus, Mississippi, which also is where SDI’s Aluminum Dynamics subsidiary is building an aluminum recycling and rolling plant. The biocarbon produced by SDI Biocarbon Solutions LLC, of which SDI owns 55 percent and Minnesota-based Aymium owns 45 percent, is a renewable and sustainable source of carbon that will be used as a replacement for anthracite in its steelmaking operations. The facility is projected to begin commissioning in the first quarter of 2025.

Additionally in 2023, SDI signed what it describes as the largest renewable product purchase agreement for the steel industry in North America, equivalent to approximately 15 percent of its steel mills’ electricity usage in 2023. This wind energy center began commercial operation in the first quarter of 2024.

SDI says it is working to identify and implement GHG emissions reduction projects; improve energy management to reduce GHG emissions and enhance operational efficiency; increase its use of renewable and nuclear energy, including partnering with utilities; and research, develop and implement innovative technologies.

“Steel is an integral component of the global economy and foundational to the world’s essential infrastructure. Specifically, lower-carbon steel is necessary for the transition to a lower-carbon global economy,” Millett says. “With these new targets and a proven track record of progress, we are demonstrating our commitment to continue making the steel required for a sustainable future.”

Millett adds that as steel producers establish and execute targets aligned with the GSCC standards, greenhouse gas emissions reductions will accelerate. “Steel Dynamics is already a leader in producing lower-carbon emissions steel products. We plan to continue to address decarbonization issues and to play a leadership role in developing innovative ways to reduce our carbon impact.”