Heat Treat Industry News

November 16, 2009

ArcelorMittal Energy Project to Create Jobs

The U.S. Department of Energy has awarded ArcelorMittal $31.6 million to fund an industrial energy efficiency project at its Indiana Harbor facility in East Chicago. The steel manufacturer says the initiative will create several hundred jobs over the next two years and preserve thousands more in the region. ArcelorMittal will use the grant to install a boiler to help use the waste blast furnace gas to produce electricity.

Source: Inside INdiana Business

Project location and background:

*ArcelorMittal's Indiana Harbor facility is the largest steel manufacturing facility in the U.S. Employing nearly 5,900 people, the facility is strategically located on 3,100 acres in East Chicago, Indiana, on the southern shore of Lake Michigan, about 20 miles southeast of Chicago, and is capable of producing over 10 million tons of steel annually.

*Indiana Harbor is the largest steel plant in the US. The Number Seven Blast Furnace is the largest blast furnace in North America. It produces 12,000 tons of hot metal per day or 4M short tons per year of iron. The blast furnace was first built in 1980 and recently had major renovations in 2003.

Project summary:

*The project will install an efficient recovery boiler to use the waste blast furnace gas generated during iron-making operations to produce electricity and steam on-site. Currently 46 billion cubic feet of blast furnace gas is flared annually instead of being reused to power other operations. The project will save an estimated 3.66 trillion Btu annually from the waste gas. This is the equivalent to the amount of electricity needed to power 30,000 households for a year, or the same reduction of removing 62,000 cars from the road.

*The total project will take 30 months with the system startup no later than March 2012. A team is in place and a schedule is in place. The company will hire an engineering company in to do the detailed engineering work.

*The project will create several hundred jobs during the next two years and protect and preserve thousands of jobs in the region.

*The project will help utilize a vast fuel source which is now wasted and reduce emissions from the facility. It also will help lower energy costs and per ton production costs by an amount that is large enough to positively affect the plant's competitiveness.

Requirements for the DOE grant - three criteria:

*The ability to preserve and create domestic jobs.

*A shovel ready project, with a showing of our ability to do the project.

*Measure the amount of energy we are saving.

Quote from Senator Lugar:

“This Department of Energy award is a visible recognition that ArcelorMittal is focused on making key steps towards energy efficiency,” said Lugar. “I congratulate ArcelorMittal on these steps to improve efficiency, energy usage and the environment.”

Quote from Congressman Visclosky:

“This Recovery Act grant marks a commitment to Northwest Indiana’s steelworkers,” said Congressman Pete Visclosky (D-Ind.). “The project will create jobs now, greatly increase energy efficiency in the steelmaking process, and help ensure the competitiveness and viability of Northwest Indiana’s steelworkers for years to come. I am proud to see the Recovery Act advance this job-creating effort with long-term energy and economic benefits for the region, and commend ArcelorMittal and the Department of Energy for their commitment to Northwest Indiana.”

Quote from Mike Rippey, CEO and President, ArcelorMittal USA:

"ArcelorMittal is honored to be one of only nine companies selected by the Department of Energy to receive funding for energy efficiency projects and our grant will support a vital project within the Indiana Harbor facility," said Michael Rippey, President and CEO, ArcelorMittal USA. "The energy saved from the Blast Furnace Gas Flare Capture project at our Number 7 Blast Furnace will be the equivalent to the amount of electricity needed to power 30,000 households for a year. In addition, funding for this critical project will ensure the sustainability of steelmaking in Northwest Indiana for years to come."

Source: ArcelorMittal

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