USS to Build $3 Billion EAF Mill

Construction is expected to begin in the first half of 2022 with production slated to start in 2024, the Pittsburgh-based steelmaker said.

U.S. Steel said a site selection process has also been launched.

Potential locations include states where the company already has EAFs – a reference to Big River Steel in Osceola, Ark., and its Fairfield Works in Alabama. Greenfield sites are also under consideration, the company said.

“Permits may be filed in one or more locations,” U.S. Steel Chief Commercial Officer Kenneth E. Jaycox said in a letter to customers. Final site selection will depend on a variety of factors including construction terms, state and local support, swift permitting, energy availability and cost, and logistics infrastructure, a company spokeswoman told SMU.

“Our customers are looking for like-minded partners to continue marching towards a sustainable future,” U.S. Steel President and Chief Executive Officer David B. Burritt said in a statement.

“We are demonstrating our commitment to this shared goal by beginning the process to increase our sustainable steelmaking capability,” he said.

U.S. Steel said the new EAF would help it reduce its greenhouse gas emissions by 20% by 2030 and to be “net zero” on carbon emissions by 2050. The new mill will also make U.S. Steel’s verdeX “sustainable” steel, the company said.

U.S. Steel did not specify which customers it might target. But market participants have told Steel Market Update that automotive customers in particular might increasingly look to source from EAFs given their perceived lower carbon footprint compared to traditional integrated mills.

The steelmaker also said that the new mill would use equipment “already purchased and owned by the company.”

It was not immediately clear on Thursday whether that was a reference to the “endless caster” that had initially been slated for its Mon Valley Works in western Pennsylvania.

By Michael Cowden, Michael@SteelMarketUpdate.com