The International Finance Corporation (IFC), a member of the World Bank Group, and Aperam, a global stainless, alloys, specialties and electrical steel manufacturer as well as metals recycler, are pleased to announce a financing package to support Aperam’s decarbonization efforts through the production of sustainably produced charcoal, a renewable fuel for steel manufacturing (instead of commonly used coke). This financing aligns with IFC’s broader strategy to promote the sustainability of the steel industry.
The stainless, alloys and electrical steel industries are a cornerstone of the global economy, with applications spanning in capital goods, construction, energy, automotive and transport, manufacturing and general industry. As a key driver of infrastructure development and economic growth, the sector faces significant challenges in reducing carbon emissions. According to IFC estimates, the overall steel production is responsible for approximately eight percent of the world’s carbon dioxide emissions.
The investment will support the acquisition of complementary eucalyptus plantations and the modernization of Aperam’s charcoal-producing kilns with cleaner and more efficient technology, further enhancing the sustainability of Aperam BioEnergia operations. Additionally, it will finance the increase of its seedling nursery capacity to meet the growing demand for superior qualitative seedlings from other forestry companies and the development of improved tree varieties that yield higher biomass while requiring fewer resources, such as water. Finally, as a key innovation, this investment will help pioneer the company’s commercial-scale production of bio-oil, captured from the waste of the charcoal production process. This bio-oil can replace synthetic fuel products, helping to avoid Green House Gas emissions and improving the circularity of Aperam’s operations.
Courtesy of Aperam.