NEMO CEO Liss says all signs point to need for US pig iron

NEMO Industries has been busy since announcing its Louisiana pig iron project last year. The company made further strides earlier this month toward bringing its planned direct-reduced iron (DRI) plant to fruition, naming Italian firm Tenova as technology provider for the operation.

SMU interviewed NEMO CEO and co-founder Daniel Liss last October about the $3-billion granulated pig iron plant in the works. It’s set to have an annual capacity of approximately 2.3 million metric tons. Following the Tenova announcement, we sat down again with Liss to discuss further project developments as it moves toward a concrete start date. (The current project startup date is 2030.)

“We’ve got great momentum,” Liss told SMU. “But I also think that, in this business, it ultimately comes down to macro forces and supply and demand. Without exaggeration, every single factor is pointing toward the need for American pig iron.”

He said there are plenty of current reasons to bring back further domestic pig iron production. These include Brazilian pig iron flowing to Europe, the lack of Ukrainian material because of the war there, and the absence of Russian material because of sanctions.

Also, there’s the question of tariffs. Although Brazilian pig iron has so far been exempt from US tariffs, Liss said the situation is nuanced. He said a factor cited by US steelmakers for the exemptions has been the lack of domestic production.

Liss also reiterated that domestic pig iron production can serve essential military, aerospace, and defense uses of steel. Adding to that, geopolitical troubles and subsequent shipping woes further support domestic pig iron output.

“With the Iran war, and what’s happening in the Red Sea and the Strait of Hormuz, shipping rates have gone crazy,” Liss said. “So all things being equal, we believe that our offering is cheaper than a lot of what’s on the market.”

And it’s not just producing for domestic steelmakers. On a recent trip to an International Iron Metallics Association (IIMA) event in Stockholm, Liss said he was “flooded with interest from different European steelmakers.”

Tenova and next steps

Liss called the announcement of Tenova as technology provider “incredibly exciting,” adding, “They have a well-proven technology… We are really excited to partner with them.”

He said the feed study will take about a year, and “there are some really interesting opportunities with export credit with the Italian government they’re going to explore.”

Additionally, NEMO will soon announce its selections for the smelting furnace, material-handling systems, dock, and other infrastructure.

“We’re well advanced in making those selections, and should have some more news for you soon,” Liss said.

He also shared some updates on the permitting front.

“We’ve already had our initial meeting with the Army Corps of Engineers, which is for the federal dock permit, and the two other big permits are a state air permit and a water permit,” Liss said. “And a lot of the initial work is done, and we’re close to submission.”

In just these few months, you can see how far the project has already come. As the expected 2030 startup date approaches, we’ll keep you posted on all the new developments.

Ethan Bernard

Ethan Bernard is managing editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years, starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.