Boston Metal gets $120 million boost from ArcelorMittal for ‘green steel’

Boston Metal, a Massachusetts-based company, took a significant step towards realizing the production of “green steel” with a $120 million investment from ArcelorMittal, the world’s second-largest steelmaker.
This investment will fuel the expansion of production at Boston Metal’s pilot plant in Woburn, near Boston, and support the launch of commercial production in Brazil. The company’s innovative approach involves using renewable electricity to convert iron ore into steel, marking a departure from the conventional method which heavily relies on coal, a major contributor to carbon emissions.
Steel production is notorious for its environmental impact, with traditional methods accounting for a substantial portion of global carbon dioxide emissions. Boston Metal’s technology aims to address this issue by eliminating carbon dioxide emissions entirely from the steel production process.
The investment from ArcelorMittal, facilitated through its carbon innovation fund, represents the largest single investment to date in this field. Microsoft is also among the investors supporting Boston Metal’s efforts.
CEO Tadeu Carneiro emphasized that their technology is designed to revolutionize steel production by decarbonizing it on a large scale. Instead of using coal, their process involves running electricity through iron ore to separate the iron from the oxide in a specialized metal box or “cell.” This method not only eliminates carbon dioxide emissions but also allows for the extraction of valuable metals from waste slag.
Boston Metal aims to scale up its production to millions of tons by 2026, offering a cleaner alternative to traditional steelmaking. The transition to cleaner steel processes is gaining momentum, particularly in Europe, where major steelmakers are exploring alternatives to coal-fired production. Additionally, some automakers are embracing cleaner steel to fulfill environmental commitments to stakeholders and consumers.
While Asia remains the largest producer of steel, there are indications of a shift towards cleaner steel production in countries like China and Japan, signaling a broader trend towards sustainability in the industry.