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ArcelorMittal & LanzaTech Announce Ethanol Production Milestone

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ArcelorMittal S.A. (MT - Free Report) and LanzaTech Global have announced that ethanol from ArcelorMittal's Steelanol facility in Ghent reached a production milestone, with ethanol volumes at a level that allows barge shipping. This achievement advances LanzaTech and ArcelorMittal's collaborative plan to create a robust European supply chain for regionally produced sustainable ethanol.

ArcelorMittal's Steelanol facility converts carbon-rich industrial emissions from its blast furnace into fuel-grade ethanol using LanzaTech's cutting-edge carbon recycling technology. Ethanol production began in 2023, and the facility is the first of its kind in the European steel sector. The ethanol produced can be sold straight into fuel markets or purified and transformed for use in a variety of consumer products such as garments, personal care and packaging.

With efforts like Steelanol, which transforms carbon-rich gasses into ethanol, and Torero, which makes biocoal from waste wood, MT is making significant progress in lowering CO2 emissions. Addressing climate concerns, on the other hand, necessitates a comprehensive approach that includes sustainability efforts such as energy efficiency, CCUS and electrification, in addition to Steelanol.

ArcelorMittal's Steelanol facility can produce 80 million liters of advanced ethanol per year, which accounts for roughly half of Belgium's current consumption. It plans to reduce carbon emissions from the Gent facility by 125,000 tons per year, furthering the EU's 2030 Climate Target Plan, which aims to reduce greenhouse gas emissions by 55% by the end of this decade. Primetals Technologies and E4tech (which has been acquired by ERM) are among the project partners, with CINEA, the European Climate, Infrastructure and Environment Executive Agency providing support.

Shares of ArcelorMittal have lost 6.9% in a year compared with 17.8% decline of the industry.

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The company anticipates capital expenditure for 2024 to be within the previous view of $4.5 billion to $5 billion. MT’s strategic expansion projects are expected to increase EBITDA and investable cash flow in the future. ArcelorMittal is optimizing its decarbonization strategy to maintain competitiveness and profitability. Its global asset portfolio positions it to capitalize on the expected growth in steel demand over the medium/long term. The company prioritizes safety, growth projects and shareholder returns while maintaining a strong balance sheet.

MT’s Rank & Key Picks

MT currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , DuPont de Nemours, Inc. (DD - Free Report) and CF Industries Inc. (CF - Free Report) . 

Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 14.1%. The company's shares have soared 161.6% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for DD’s current-year earnings is pegged at $3.88 per share, indicating a year-over-year rise of 11.5%. DD, a Zacks Rank #2 (Buy) stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 12.9%. The company's shares have rallied roughly 13.4% in the past year.

The Zacks Consensus Estimate for CF’s current-year earnings is pegged at $6.32 per share. CF, a Zacks Rank #1 stock, beat the consensus estimate in two of the last four quarters while missed twice, with the average earnings surprise being 10.3%. CF has rallied around 18.2% in the past year.

 

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