Steel Dynamics, Inc. shared the creation of a strategic joint venture with Aymium, a leading producer of renewable biocarbon products. Steel Dynamics owns 55 percent of the joint venture, with Aymium owning the remaining 45 percent.
The entity will operate under the name SDI Biocarbon Solutions, LLC. Initial plans for the joint venture include the construction and operation of a biocarbon production facility to supply Steel Dynamics’ electric arc furnace steel mills with a renewable alternative to fossil fuel carbon using Aymium’s patented technology. The initial facility’s production capability is expected to be more than 160,000 metric tons per year, for an estimated capital investment of $125 million to $150 million. The facility is planned to begin operations late 2023.
“We are proud to help accelerate our collective goal to reduce greenhouse gas emissions through this further partnering with Aymium,” stated Mark D. Millett, chairman, president, and chief executive officer of Steel Dynamics. “We believe this strategic joint venture will significantly reduce our steelmaking greenhouse gas emissions, which are already materially lower than our global competitors, in a cost-effective manner. We also believe Aymium’s process can provide a renewable fossil fuel carbon alternative for Iron Dynamics, our proprietary ironmaking operations. We have successfully trialed Aymium’s biocarbon product in our steel operations, and conservatively estimate this first facility will reduce our Scope 1 steelmaking greenhouse gas emissions intensity between 20 and 25 percent, with potential upside from the use of the facility’s biogas. Our commitment to all aspects of sustainability is embedded in our founding principles – valuing our teams, our partners, our communities, and our environment. This investment represents a significant step forward on our path to carbon neutrality and our continued commitment to reduce our environmental footprint.”