ArcelorMittal invests $6.6M in Canada’s CHAR Technologies
July 5, 2023 By CHAR Technologies
CHAR Technologies Ltd. has closed a $6.6-million strategic investment by world’s leading steel and mining company, ArcelorMittal S.A., through ArcelorMittal XCarb S.à r.l. and ArcelorMittal’s XCarb Innovation Fund. With a presence in 60 countries and primary steelmaking facilities in 16 countries, including ArcelorMittal Dofasco in Hamilton, Ont., ArcelorMittal generated revenues of US$79.8 billion in 2022.
CHAR also signed a memorandum of understanding under which ArcelorMittal Dofasco will purchase biocarbon produced at CHAR’s cutting-edge facility in Thorold, Ont., starting in 2023. CHAR’s proven technology transforms wood waste into renewable natural gas and biocarbon through a proprietary high-temperature pyrolysis cracking process.
This marks a milestone achievement for the collaborative efforts of CHAR and ArcelorMittal Dofasco to develop a drop-in replacement biocarbon to reduce ArcelorMittal Dofasco’s consumption of fossil-based carbon sources. Under the agreement, CHAR’s biocarbon, the first in Canada for steelmaking, is targeted for trial in the Electric Arc Furnace (EAF) with the aim of reducing GHG emissions by 35,000 tonnes over four years. Biocarbon produced by CHAR Technologies has been tested in the blast furnace at ArcelorMittal Dofasco since 2021 and this agreement will enable larger scale trials in the EAF process.
The XCarb Innovation Fund’s global mandate is to invest in companies developing breakthrough technologies that will accelerate the steel industry’s transition to carbon neutral steelmaking. ArcelorMittal’s investment in CHAR marks the fund’s seventh global investment and first ever in a Canadian company. This strategic partnership will be instrumental in propelling CHAR’s mission to revolutionize carbon-free solutions within heavy industries.
The XCarb Innovation Fund investment will be utilized to maximize the impact of the Canadian and Ontario governments’ December 2022 investment of $12.8 million in CHAR. It aims to accelerate the scale up of production as well as research and development initiatives at CHAR’s Thorold facility. This investment will also enable CHAR to expedite the development of additional project sites.
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