Innovation

Aperam is fully aware of its high energy consumption. Regarding energy intensity, Aperam's Chief Sustainability Officer (CSO), Mr. Carlo Morettin, stated that "it's clear that we are part of the biggest consumers. When you look at both Genk and Châtelet plants, our natural gas consumption is close to 2% of the total consumption in Belgium." Despite operating in heavy industry, Aperam has a best-in-class carbon footprint as a result of 3 key factors, the third of which establishes their unicity in the steel industry:

1. Aperam integrates a maximum amount of recycled material into its steel production. Its European electric arc furnaces predominantly use scrap metal instead of mined raw materials. Additionally, Aperam takes reasonable care to leverage waste and by-products, in line with their zero-waste target and SDG 12: Responsible consumption and production.

2. On top of operating energy efficiently, Aperam uses a low-carbon energy mix. For example, it re-utilizes the CO2 resulting from the production processes, adding Hydrogen to obtain Methane (CH4), a well-known biogas, which can be used as a source of energy

3. Most importantly, Aperam can be considered an agricultural company, operating over 100,000 ha of FSC®-certified forest in Brazil. It cultivates forests to produce charcoal, which can be used as input in the steel-making process as a natural and renewable substitute for fossil fuels (coke). This process aligns with SDG 13 (Climate action), consolidating its position as a highly innovative player in the steel sector.

Inspiration

ArcelorMittal’s Board of directors initially floated the idea for Aperam as a separate entity for producing stainless steel in 2011. Their stainless steel division consistently achieved solid results but could have better future perspectives established as a completely new company to produce stainless steel. Thus, Aperam was created. ArcelorMittal simultaneously transferred part of its division for sustainable forest management and charcoal production to this newly formed company under the name ‘Aperam BioEnergia.’

The etymology of BioEnergia leads back to 1939, when ArcelorMittal Brazil, called Belgo Mineira, started the first forest plantations in Santa Barbara, which resulted in experiments with eucalyptus plantations. Due to the increasing need for charcoal production and more excellent knowledge of forestry, the company decided to expand these activities and established CAF Santa Barbara in 1957. This activity was the first step in the execution of ArcelorMittal’s vision of sustainable forestry production. The idea to sustainably produce stainless steel via BioEnergia resulted from the market’s need for eco-friendly steel and the Board’s wish to take up its responsibilities to the planet.

Overall impact

The production of its charcoal allows Aperam to eradicate the use of extractive coke and makes its steel fully sustainable, unlike its competitors' products. The charcoal produced at BioEnergia comes from the renewable eucalyptus forests of Minas Gerais in Brazil. Cloned saplings that rely on superficial layers of water select fully sustainable use of local resources that do not endanger deep reserves. Eucalyptus cultivations can produce more timber from fewer resources (water). This production method aligns with SDG goal 6: Clean water and sanitation.

The carbonization process is realized with extraordinary energy efficiency and without extractive fuels. It reuses the heat and gases generated by incineration to dry the wood. Thanks to this self-produced biomass charcoal, more than 30% of Aperam's energy comes from renewable sources. This process is in line with SDG 7: Affordable and clean energy. It makes Aperam's steel a leader in terms of CO2 footprint. According to Aperam, its forest is carbon positive, which means it acts as a carbon sink. This process aligns with SDG 13: Climate action.

Aperam's green steel utilizes many products, uplifting sustainability and increasing stakeholders' well-being and success. For example, stainless steel produces environmentally friendly electric cars. Furthermore, stainless steel is an almost endlessly recyclable product. The CSO of Aperam states, "you never see a piece of stainless steel on the road because it has a value; so every time there is a piece of stainless steel somewhere unutilized, it is always recycled." Also, Aperam's process is more sustainable than most competitors and will improve with less environmental impact.

Business benefit

“When you see that a company is sustainable, it means (as the word says) that it will survive for many years,” Aperam’s CSO explains. For a company, sustainability means lasting longer in the business, so the innovation must yield some benefits.

The innovation allows Aperam to remain a leader in sustainable stainless steel production, making it more attractive for potential partners and customers in the market that focus on sustainability and a green economy. To quote Aperam’s CSO: “Today, we do see a lot of customers who are willing to pay more to have ‘green steel,’ so they push us to be greener.”

At the same time, they are attempting to involve Aperam’s suppliers in their sustainable steel project, making all stakeholders part of a more extensive network of participants. Quoting Mr. Morettin: “We try to push our suppliers to be greener themselves, it means that [...] the more that they will become greener, the more we will be greener as well.” This process is part of their ‘full-spectrum flourishing’ approach.

The gains for Aperam are both economic and reputational. Many years ago, the decision to invest in supporting and fostering Eucalyptus forests for charcoal production happened. Companies desperately look for new ways to obtain clean energy nowadays, and Aperam’s decision has been quite insightful.

Aperam BioEnergia represents a revolutionary innovation since it enables a vast steel-producing company to achieve sustainability. At the same time, it contributes to the preservation and restoration, of global biodiversity, ideally in line with the SDGs above for Affordable and clean energy (7) and Climate action (13).

Social and environmental benefit

As mentioned above, the use of cultivated forests links with SDG 13: Climate action. BioEnergia’s cultivated forests produce charcoal, which reduces the need for coke and acts as an FSC®-certified carbon sink. Renewable forests are highly beneficial for the environment: they minimize the impact on native vegetation and protect the fauna within the company’s operation area. Moreover, they recover depleted soils by depositing biomass and controlling erosion. Eucalyptus plants provide an organic cover to the ground by depositing leaves and thin branches, contributing to structural improvement. Eucalyptus helps regulate the quality and flow of hydric resources. It consumes water in the same proportion as other forest species, all the while being more efficient in water usage for biomass production. These plants absorb a large quantity of CO2 from the atmosphere, weakening the greenhouse effect and consequently battling global warming. They present a higher yield by area unit, occupying smaller territorial surfaces.

This innovation represents a source of economic and social improvements by generating jobs linked to the maintenance of the forest, maintaining countryside populations, and mobilizing several social responsibility actions.

Aperam’s business solution thus enables full-spectrum flourishing: it supports a culture of increased well-being and success for customers, community members, and employees. In this regard, the CSO of Aperam also mentioned the following: “We have a lot of training; we try to improve the sustainability awareness of our employees to have an impact in their day-to-day business in their own life. If we have people committed to sustainability, we will move forward faster in this domain.” The high consideration in which employees work for the sustainable innovation process demonstrates the daily attention and dedication that Aperam puts into its actions. As a sign that they genuinely aim to become a greener company, they try to improve the population’s behaviors and way of living through means that outbound the normal business activities.

In addition to these social and environmental benefits, Mr. Morettin also addressed more actions taken by the company: “The strategy for us being more sustainable is: [...] to electrify and to move to green energies. Solar panels, biogas, biomass, windmills, etc. To become, one day, zero CO2 for the goal footprint”. Aperam installed 65,000 solar panels in their Genk and Châtelet plants. They produce 30 megawatts of green energy. That amounts to only around 5% of their total annual consumption but represents the consumption of about 3,500 houses. Aperam is working to double this capacity in the future.

Interview

Carlo Morettin, CSO