Steel Dynamics aims for carbon neutrality by 2050

Steel Dynamics plans to reach carbon neutrality across its North American steelmaking operations by 2050, the company said July 7.

The Fort Wayne, Indiana-based company, which produces steel only via electric arc furnaces, also set interim emission-reduction targets for 2025 and 2030 to serve as milestones toward the final carbon-neutral goal, according to a statement.

By 2025, SDI said it aims to reduce Scope 1 and Scope 2 combined greenhouse gas emissions intensity by 20% across its EAF steel mill footprint, compared with a 2018 baseline. The company is then targeting a 50% reduction in emissions by 2030.

"Our Scope 1 and Scope 2 emissions are already among the lowest in the industry," SDI CEO Mark Millett said. "We are embarking on a path to carbon neutrality from a position of strength, and we are committed to the continued reduction of our environmental footprint."

SDI said its current steelmaking operations already fall within the 2050 intensity targets designed to meet the Paris Agreement, based on International Energy Agency recommendations for the steel sector.

"Further, the company is aligned with the Science Based Targets Initiative as its EAF steel mills plan to meet the SBTI 'well below 2°C' scenario target for Scope 1 and 2 combined emissions intensity by at least 2030, based on the Iron & Steel Sectoral Decarbonization Approach," SDI added.

To aid in its emission targets, SDI said it will focus on improving energy management, renewable energy use, operational efficiency and research.

SDI's total steel shipments amounted to 2.82 million st in the first quarter.