In a statement, SDI said the plant, to be built through a 55-45 joint venture with Minnesota-based Aymium, will secure an alternative, renewable source of carbon and lower the company’s Scope 1 emissions intensity. 

Aymium holds patents on a process that converts forestry and agricultural waste into carbon, hydrogen and water by way of a combustion-free thermochemical process, it says. SDI will be the majority partner in the joint venture. 

Named SDI Biocarbon Solutions, the joint venture will set up a plant capable of producing more than 160,000 metric tons annually. The plant is expected to enter service in late 2023. 

SDI said the plant is expected to cost US$125 million to US$150 million. It also said it has successfully trialed Aymium’s biocarbon in its EAFs and believes it could yield a 20% to 25% reduction in Scope 1 emissions intensity. 

“We also believe Aymium’s process can provide a renewable fossil fuel carbon alternative for Iron Dynamics, our proprietary ironmaking operations,” SDI chief executive Mark Millett said in a statement. 

“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,” he added.