SMU Community Chat
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/c88811ffaa779e05ac222cb6f74c190c.jpg)
Environmental Stewardship in Steel Critical: Schmitt
Written by David Schollaert
June 23, 2021
Encouraging the market to use better steel, and use steel better, along with being a leader in fossil-free steel production, is SSAB’s broader goal, said SSAB Americas President Charles Schmitt, during Wednesday’s SMU Community Chat webinar. SSAB Americas is the largest supplier of heavy steel plate in North America.
Steel consumption has doubled since 2000, and although 2020 will be an outlier due to COVID-19, growth in steel demand is not letting up. As the marketplace rebounds, driving urbanization and infrastructure, the increased demand will command more resources and commodities, Schmitt remarked. “The required added production will inevitably place strain on the environment and material choices.”
Steel serves the critical needs of agriculture, energy, transportation and infrastructure, and its environmental benefits cannot be understated, Schmitt said. Steel is the most circular material in the world as it is completely recyclable without loss in quality. Recycling steel scrap is not enough, however, as the market will still need an estimated 50% of iron-ore-based production by 2050. To that end, SSAB has set ambitious goals to reduce its carbon footprint and plans to be the first to offer fossil-free steels. SSAB’s HYBRIT joint venture with LKAB and Vattenfall announced earlier this week that it has successfully processed the first hydrogen-produced sponge iron at its pilot plant in Sweden. The direct reduction facility, which uses hydrogen instead of coke as the primary reductant to produce the iron, is a technological breakthrough in steelmaking that could eventually eliminate 90% of SSAB’s CO2 emissions and is a decisive step towards fossil-free steel production, Schmitt said.
Schmitt confirmed that HYBRIT has produced its first 100 metric tons of hydrogen-based sponge iron. The next step is to introduce the product into SSAB’s steelmaking process in the coming year.
SSAB is among electric-arc furnace producers in the U.S. that are already 75% more carbon efficient than global producers that predominantly use blast furnaces. “Technology-backed environmental leadership has always been a part of our vision,” said Schmitt. “SSAB is part of the EAF community, but is also actively working to eliminate emissions related to fossil fuels by becoming more energy efficient and seeking alternative fuel and energy sources.”
He pointed to SSAB’s plate mill in Montpelier, Iowa, which is now more than 83% powered by renewable generation—primarily wind energy from its partnership with MidAmerican Energy—with the ambition to be in the mid-90% range by 2022.
SSAB claims its emissions intensity (both scope 1 and scope 2) is 66% lower than the global average for every metric ton of steel produced, while direct greenhouse gas (GHG) emissions are 58% lower than the U.S. industry average for every metric ton of steel produced.
The conversation naturally shifted to prices, supply and demand. Schmitt declined to comment on if there will be a premium for green steel, but noted there are clear synergies with environmentally friendly downstream markets such as electric vehicles, wind towers and some construction products. “The sustainability message and corporate responsibility have a great deal of momentum,” he said.
Schmitt is bullish on the current prospects for conventional plate products. Other traditional plate markets such as oil and gas have been lagging, but rising oil prices could prompt a rebound for products such as pipe and storage tanks. Offshore wind towers now in the works could attract new investment.
When queried on the Section 232 tariffs and steel allocation, he said “it’s all about free trade and limiting global overcapacity,” noting that the EU extended its safeguard measure for another three years. “It’s a global issue that needs to be resolved by global solutions. Section 232 was a temporary solution, but the massive amount of overcapacity is an issue. Whether it be in Europe or North America, there need to be trade rules to address overcapacity.”
Asked about the pending infrastructure legislation being debated in Washington and its potential for increased steel demand, Schmitt said that SSAB is quite optimistic an infrastructure bill will be delivered. “It is a very much welcomed investment by the government and our industry and SSAB supports it.”
By David Schollaert, David@SteelMarketUpdate.com
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/02/SMU_DS_headshot.png-150x150.jpg)
David Schollaert
Read more from David SchollaertLatest in SMU Community Chat
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/01/cropped-SMU_Mobile_final.png)
Next SMU Community Chat to feature new Reibus CEO Jared Rowe on July 24
Reibus International Inc. CEO and Chairman Jared Rowe will be the featured speaker on the next SMU Community Chat webinar.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/01/cropped-SMU_Mobile_final.png)
SMU Community Chat: Bankers discuss M&A in metals
Two veteran investment bankers joined SMU's Community Chat on Wednesday, July 10, to talk consolidation and M&A in the metals industry.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/05/Jared-Rowe.jpeg)
Next SMU Community Chat to feature new Reibus CEO Jared Rowe on July 24
Reibus International Inc. CEO and Chairman Jared Rowe will be the featured speaker on the next SMU Community Chat webinar. The webinar will take place on July 24 at 11 am ET. You can register here. The live webinar is free for all to attend. A recording will be available only to SMU members.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/01/cropped-SMU_Mobile_final.png)
SMU Community Chat replay now available
The latest SMU Community Chat webinar reply is now available on our website to all members. After logging in at steelmarketupdate.com, visit the community tab and look under the “previous webinars” section of the dropdown menu. All past Community Chat webinars are also available under that selection. If you need help accessing the webinar replay, or if your company […]
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/01/cropped-SMU_Mobile_final.png)
SMU Community Chat: Back to building with Triple-S CEO Gary Stein
Looking out over the American economy, Triple-S Steel Holdings CEO Gary Stein believes what is required doesn’t fundamentally have to do with government policy. “Rather, it’s a mind shift.”