Making Bioethanol from Steelmaking Process

ArcelorMittal has inked a deal with LanzaTech and Primetals Technologies to build a $96 million biofuel facility adjacent to ArcelorMittal's steel plant in Ghent, Belgium.

Using a process developed by LanzaTech, the partners will convert waste gases from ArcelorMittal's steel operations into bioethanol. The facility is expected to produce 47,000 tons of ethanol per year by 2018, which the companies calculate could fuel 500,000 vehicles. Construction will begin later this year.

Currently about half the carbon used in ArcelorMittal's steelmaking chemistry yields carbon monoxide. This is combusted as carbon dioxide and either flared or used to heat and power the steel mill, then emitted into the atmosphere.

LanzaTech's technology uses a microbe, which was initially discovered in the intestinal tract of rabbits, to ferment the waste gases and turn them into bioethanol. The partners note that the ethanol is derived without diminishing food feedstocks, which is a concern with other biofuel sources.

The bioethanol can be blended with gasoline or used in other applications such as jet fuel. Every ton of bioethanol produced reduces ArcelorMittal`s CO₂ emissions by 2.3 tons and can displace 5.2 barrels of gasoline, according to the company.

ArcelorMittal, the world's largest steel and mining company, began working with New Zealand-based LanzaTech in 2011 and more recently piloted the bioethanol process at its facilities in China. Primetals, a U.K.-based technology and service provider to the iron and steel industry, will contribute engineering, automation and production expertise.

ArcelorMittal has secured a €10.2 million ($11.4 million) grant under the European Union's 2020 Horizon initiative to further research and develop the technology. The company is looking for joint venture partners to help fund the project and distribute the fuel. The steel giant plans to eventually implement the bioethanol process at all its steel facilities in Europe, which the company says could generate 500,000 tons of bioethanol annually, or about 10% of Europe's total ethanol production.