ArcelorMittal Launches Funds to Support Environmental Initiatives
07/14/2008 - ArcelorMittal has launched a new clean technology venture capital fund to support commercialization of clean energy technologies, as well as a new carbon fund to promote climate friendly solutions for steel production processes.
ArcelorMittal has launched a new clean technology venture capital fund, beginning with an initial clean technology investment of US$20 million in thin-film solar panels developer Miasolé.
The company said the new fund is part of its commitment to finding solutions for environmental challenges, including climate change. With the objective of supporting the commercialization of clean energy technologies, the fund will focus on ventures that have relevance for the steel industry and its customers.
Managed by a team of ArcelorMittal Flat Carbon Americas (FCA), the Fund’s investment decisions are taken by a six-person Investment Committee chaired by Lou Schorsch, CEO of ArcelorMittal FCA. ArcelorMittal will be working with leading venture capital firms—including Bessemer Venture Partners, Khosla Ventures, and Kleiner Perkins Caufield & Byers—to help finance clean technology innovation through the fund.
The Fund has already made first investment—US$20 million in Miasolé, a California-based pioneer in the development of versatile thin-film solar panels that is also backed by Bessemer Venture Partners, Kleiner Perkins Caufield & Byers and Vantage Point Venture Partners.
Miasolé is manufacturing new solar products that utilize less semiconductor material than today’s legacy silicon modules and boasts the highest lab efficiencies of any thin film solar material. Miasolé has developed unique high-volume manufacturing processes that enable efficient production of Copper Indium Gallium Selenium (CIGS) solar products on a flexible stainless steel substrate. This technology significantly lowers the installed cost of Photovoltaic (PV) systems, and will enable renewable energy from the sun to replace carbon generating fossil fuels.
ArcelorMittal also announced the creation of a new carbon fund that will allow it to strategically engage in the carbon market and promote climate-friendly solutions that are relevant for the steel industry. The fund, which has an initial investment commitment of €100 million (US$ 157 million) is currently looking at investment opportunities in renewable energy, energy efficiency, methane capture and greenhouse gas reducing technologies—all of which have the potential to generate carbon credits under the Kyoto Protocol.
ArcelorMittal intends to use the carbon credits received from these Clean Development Mechanism and Joint Implementation projects for compliance in the EU Emissions Trading Scheme.
ArcelorMittal is the world's largest integrated metals and mining company, with over 310,000 employees in more than 60 countries. The company leads a number of major global markets, and holds leading R&D and technology, as well as sizeable captive supplies of raw materials and significant distribution networks. An industrial presence in over 20 countries across 4 continents exposes the company to key steel markets, from emerging to mature.
ArcelorMittal’s key financials for 2007 show revenues of USD 105.2 billion, with a crude steel production of 116 million tonnes, representing around 10% of world steel output.
