News Ecology decarbonization 26 June 2021
One of the largest investors in zero-carbon production urges the business and the government to move towards decarbonization together
Ferrexpo, a Swiss-based mining company with iron ore assets in Ukraine, will be a partner of the international forum on “Decarbonization of the steel industry: a challenge for Ukraine” that will take place on 14 July 2021 in a combined format (offline and online).
Ferrexpo seeks to provide its customers with the iron ore of the highest quality while understanding the scale of impacts the iron and steel industry has on the environment. In 2020, Ferrexpo invested $206 million in production, and in total $2.75 billion since IPO. In 2020, the Company also invested $17 million in environmental projects.
As part of promoting the decarbonization of the entire steel production chain, Ferrexpo is reducing CO2 emissions from iron ore mining and pellet production. In 2020, specific CO2 emissions per ton of product decreased by 16%, including an 8% reduction in emissions from pellet production (Scope 1) and a 21% reduction in emissions from purchased or acquired electricity (Scope 2).
The Company is considering various strategies aiming at further reduction of the carbon footprint. In the short-term perspective, Ferrexpo is going to expand purchases of ‘green’ electricity for its production needs. In the long term, the Company is exploring a possibility of building its own solar power plant, as well as switching to hydrogen for pellet production, and increasing the production of DR pellets. The first steps in this area have already been taken: in 2020, Ferrexpo produced 339 thousand tons of DR pellets, which were shipped in a trial batch.
“Decarbonization of the steel industry is a mission to be pursued not only by steelmakers alone. This process should involve iron ore companies, electricity suppliers, and government institutions. Carbon neutrality can be achieved only through cooperation,” says James North, Ferrexpo’s acting CEO.
Ferrexpo is a Swiss-based mining company with iron ore assets in Ukraine. The Company specializes in production and exports of high-quality iron ore pellets used in steelmaking. Ferrexpo is the largest exporter of pellets among the former CIS countries. Its current production assets include Poltava Mining and Yeristovo Mining. Ferrexpo plc holds 100% of shares in Ferrexpo AG, which, in its turn, owns 100% of shares in Poltava Mining and 100% of shares in Yeristovo Mining. In 2020, the Company produced 11.2 million tons of iron ore pellets. Its key export markets include Austria, Germany, Japan, South Korea, Taiwan, China, Slovakia, Czech Republic, Turkey, Vietnam and the U.S. Shares of Ferrexpo plc are listed on the London Stock Exchange under the ticker symbol FXPO.
The Forum on “Decarbonization of the steel industry: a challenge for Ukraine” will take place on 14 July 2021 in a combined format (offline and online). Venue — Hyatt Regency (Kyiv).
Discussions during the forum will focus on the matters relating to decarbonization of steel production, available and emerging techniques, companies’ targets for cutting CO2 emissions and relationships with the government in this area. The attendees will include representatives of the mining & metals companies of Ukraine, international engineering, consulting and R&D companies, and also, members of the Cabinet of Ministers, MPs, representatives of business associations and industry experts. The forum is organized by GMK Center, a Ukrainian think tank.
You can read more about the program and forum participants here.