Steel's Role in Energy Transition and the need for low-carbon production

While steel is critical for the roll-out of energy transition infrastructure, its manufacture is currently responsible for around 8% of global carbon emissions. This means there is a pressing need to establish new low-carbon steelmaking technologies.

Recognising that the scale of the challenge means consideration must be given to technological ‘breakthroughs’, we are interested in using the power of new partnerships to commercialise technology at earlier technology readiness levels.

We have therefore collaborated with the University of Birmingham to launch PeroCycle, a new venture aimed at developing and commercialising carbon recycling technology for potential implementation in steelmaking. 

PeroCycle will build upon innovations made at the University of Birmingham’s School of Chemical Engineering by Professor Yulong Ding and Dr Harriet Kildahl, who pioneered an in-process carbon recycling method with the use of a double perovskite material.

The material enables the in-process splitting of carbon dioxide into carbon monoxide at considerably lower temperatures than current methods. When recycled back into the process, this could replace up to 90% of the coal and coke typically used in current blast furnace-basic oxygen furnace systems, in turn significantly reducing the volume of carbon dioxide emissions.

Cambridge Future Tech, an experienced venture-builder working with Anglo American, will lead the spin-out and development of PeroCycle, and seek to de-risk its path to commercial applications and scale.

Matt Walker, CEO of Anglo American’s Marketing business, said, “Anglo American has long sought to help decarbonise the steelmaking sector. This new investment to commercialise a novel carbon recycling approach aligns with our ambition to reduce our Scope 3 emissions and help catalyse a lower carbon steelmaking industry through the power of innovation and partnership.”

Our other work in the decarbonisation of steelmaking includes agreements to trial the use of our premium quality iron ore products in the direct reduced iron (DRI) production process, in addition to the commissioning of our Ubuntu LNG dual-fuelled bulk carrier fleet, which delivers an estimated 35% reduction in CO₂ emissions compared to ships fuelled by conventional marine oil fuel.

Professor Yulong Ding, founding Chamberlain Chair of Chemical Engineering at the University of Birmingham, said: “We are excited to work with Anglo American and Cambridge Future Tech to commercialise our novel technology and provide a potential alternative technical solution to enable a deep decarbonisation of the steel sector, and beyond.”