ArcelorMittal Europe Flat Products invests in sustainable transport

ArcelorMittal Europe – Flat Products is decarbonising its logistics and restructuring transport activities, according to chief marketing officer Laurent Plasman and head of transport & logistics David De Rocker.

In 2023, the division successfully delivered 20 million tonnes of steel to customers through multiple transportation methods. Road transport constituted approximately 38%. The company is currently improving its rail transport capabilities and evaluating the potential for maritime shipping options. Rail cargo accounts for 42% of the steelmaker’s flat steel shipments in Europe, Kallanish notes.

Investment in electric truck trials is progressing, while the steelmaker is evaluating trucks powered by hydro-treated vegetable oil (HVO) across ten countries. This initiative has the potential to reduce carbon emissions by up to 80%, compared to the standard 65g per tonne kilometre associated with diesel-powered trucks.

In 2022, ArcelorMittal initiated a strategic partnership with Geodis at the Florange facility located in eastern France. Florange successfully transported 190,000 tonnes of steel across a distance of 579,833 km utilising HVO trucks, resulting in a reduction of approximately 794 tonnes of CO2 emissions.

The company also initiated a collaboration with DB Cargo in Europe for rail cargo operations in 2021. DB Cargo has introduced a sustainable logistics solution known as DB Eco Plus. It assesses the energy needs for particular transport tasks ahead of time and subsequently acquires the necessary volume of renewable energy. The CO2 reduction realised by each mode of transport is verified by auditor TÜV.

“Customers are increasingly looking for whole lifecycle carbon reductions to satisfy their end users, and we equally are determined to be at the forefront of offering comprehensive low carbon transport solutions, not least to support our growing XCarb® low carbon-emissions product portfolio,” a company note concludes.

ArcelorMittal announced last month it was suspending some decarbonisation investments in Europe, including the direct reduced iron-electric arc furnace transformation at Dunkirk, until it secured policy clarity (see Kallanish passim).

“We remain committed to decarbonising our assets in Europe and continue to fine-tune the engineering studies we have been undertaking this year, but no final investment decisions have yet been taken,” a company spokesperson says. “We are operating in a difficult market, and there are a number of policy uncertainties that are impacting the industry. We need an effective Carbon Border Adjustment Mechanism, as well as more robust trade defence measures, to strengthen the business case.”

However, ArcelorMittal’s investments in Spain are advancing as the country increases its access to clean energy sources like solar, wind, and nuclear power.

Natalia Capra France

kallanish.com