ArcelorMittal, MHI, BHP and Mitsubishi Development Complete First Phase of Steel Carbon Capture Trial
ArcelorMittal, Mitsubishi Heavy Industries, BHP, and Mitsubishi Development completed a carbon capture trial at ArcelorMittal's Gent, Belgium steel plant. The trial, using MHI's Advanced KM CDR Process™, achieved over 90% CO₂ capture from blast furnace gas, with potential to reduce CO₂ intensity by up to 24%. The second phase will test CO₂ capture from hot strip mill reheating furnace gases. The companies aim to assess the technology's viability for wider deployment in steelmaking.
How this was made
The 30-second read
Why it matters
The successful first phase provides concrete data that may de‑risk future investments and influence ESG ratings for the participants.
Market read
First‑phase CCUS results add new data to the decarbonisation narrative for heavy industry, offering modest trading ideas for the involved firms.
What to watch
Potential regulatory hurdles, integration costs, and the need for large‑scale financing could delay broader adoption.
Background
Carbon capture and storage (CCUS) is a key pillar of the steel industry's net‑zero targets, with few large‑scale pilots completed to date.
Ticker impact
ArcelorMittal completed the first phase of a carbon capture trial at its Gent steel plant, showing >90% CO₂ capture rates.
likely modest upside as investors price in carbon‑reduction potential
First‑of‑its‑kind trial data provides new, material insight into emissions reduction, which could improve ESG perception and long‑term valuation.
BHP co‑funded the carbon capture trial and highlighted its emissions‑reduction promise.
limited immediate impact; longer‑term upside if decarbonisation drives demand for its iron ore
Funding role is modest relative to BHP's size; market reaction likely muted.
Market effects
Shows progress for carbon‑capture tech in heavy industry, may spur further investment in CCUS solutions.
Highlights Europe’s push for steel decarbonisation, could influence policy and funding in the EU.
Adds to global CCUS momentum, but impact on broader markets remains limited.
Counterpoint
The trial is still a pilot; commercial viability and cost‑competitiveness remain uncertain, limiting upside.
Key entities
- companyArcelorMittal
Global steel producer leading the trial.
- companyMitsubishi Heavy Industries
Provider of the carbon‑capture technology.
- companyBHP
Miner funding the pilot.
