While U.S. Steel awaits a decision on a potential acquisition by Nippon Steel, local environmental groups say they oppose investing in the Gary facility.
Gary Advocates for Responsible Development and Just Transition Northwest Indiana announced Thursday that they oppose a Japanese steelmaker’s proposal to spend $300 million to renovate the Gary plant’s blast furnace. did.
These groups support a letter from the Sierra Club, a national grassroots organization. The letter, addressed to lawmakers, opposes the potential deal.
“Nippon Steel’s plans to extend the lifespan of the most polluting parts of U.S. Steel’s current steel mills cast doubt on the company’s failure to act in a climate-friendly and public health-friendly manner. No,” the letter states.
Investment in blast furnaces will allow for increased steel production, but local activists say the country will continue to rely on fossil fuels. It also extends the lifespan of your furnace by up to 20 years.
“Blast furnaces will be obsolete in another 15 to 20 years,” says GARD member Carolyn McCready. “There is no point in spending millions of dollars trying to extend the life of fossil fuel blast furnaces and continuing to pollute communities.”
GARD wants a direct reduction reactor, which McCready says is a more environmentally and economically friendly alternative. The furnace uses natural gas and has the potential to cut carbon dioxide emissions in half.
Direct reduction furnaces produce about 20% of the nation’s steel, McCready said.
According to GARD, around 12 large integrated steel mills around the world are replacing blast furnaces with direct reduction technology. Many companies are also developing green hydrogen capabilities in preparation for a complete transition to zero carbon emissions.
Susan Thomas, legislative and policy director for Just Transition Northwest Indiana, worries that investing in blast furnaces could set back the steel industry.
“This is an opportunity to advance new sustainable steel technologies,” she said. “This has the potential to future-proof our jobs and protect the health of our communities.”
Gary Mayor Eddie Melton said in a statement in September that decisions regarding pending acquisitions will be made at the federal level.
Melton said in a statement Friday that he appreciates GARD’s advocacy and commitment to environmental justice and the protection of natural resources.
He said in a statement that he believes the potential acquisition represents a “once-in-a-generation opportunity for Gary.”
“In our talks with Japan, they made it clear that they support investing in cleaner, greener steelmaking technologies,” Melton said. “I strongly support an open dialogue with Japan, GARD, and other community leaders who have long-standing concerns about the environmental and health impacts of steel manufacturing processes in our communities. We are pleased to be able to promote this.”
Although the agreement between the two companies has not yet been formally signed, U.S. Steel expected it to be formalized in the second half of this year. U.S. Steel said Nippon Steel plans to invest nearly $3 billion in its union-represented facilities, calling the investment “truly transformational.”
U.S. Steel has two types of sustainable steel produced at its Big River Steel facility in Arkansas. U.S. Steel said it was the first company to announce a goal of net-zero greenhouse gas emissions by 2050 and joined Responsible Steel, a global nonprofit group dedicated to making steel more sustainable. The first North American steel company.
“Our goals are ambitious and long-term, and we strive to pursue them in a way that benefits our employees and the places where we live and work,” the company said in a statement.
Vice President Kamala Harris said in September that she opposed Nippon Steel’s takeover of U.S. Steel and believed the company should remain domestically owned.
President Joe Biden has said since March that he opposes the takeover.
“U.S. Steel has been America’s iconic steel company for more than a century, and it’s critical that we remain a domestically owned and operated American steel company,” Biden said in a statement in March.
Thomas believes government and industry need to work together to find ways to make steel more sustainable.
“This cannot and should not be ignored,” she said. “If it is ignored, our jobs and quality of life here in Northwest Indiana will be at risk.”
mwilkins@chicagotribune.com
