# 🌎 North America Top Steel Producers

MIFUS Course: A Journey Through Global Steel Decarbonization

### 🎯 Technology Types

BF/BOF (Integrated)
EAF (Mini-mill)
DRI
Mixed Technologies

## 📊 North American Steel Industry Overview

- United States: ~80 million metric tons crude steel production annually; accounts for ~5% of global steel market
- Canada: ~12 million metric tons crude steel production annually
- Mexico: ~18 million metric tons crude steel production annually
- Total Regional Capacity: Over 110 million metric tons per year
- Major Producers: Cleveland-Cliffs, U.S. Steel, Nucor, Steel Dynamics, ArcelorMittal, Ternium
- Technology Split (USA): ~59% EAF (mini-mills), ~41% integrated BF/BOF - highest EAF share among major steel producing regions
- Emissions Profile: Steel sector contributes ~10% of U.S. industrial CO2 emissions; lowest carbon intensity globally due to high EAF usage
- Employment: Over 150,000 direct jobs in steel production
- Key Markets: Automotive (major market for flat-rolled), construction, energy infrastructure, manufacturing
- Trade Context: USMCA agreement (2020) strengthens regional steel supply chain integration and rules of origin

## 🌱 Decarbonization Initiatives in North America

- Hydrogen-DRI Technology: Cleveland-Cliffs Toledo DRI plant (1.9 Mt/y capacity) configured for up to 30% hydrogen replacement; investigating full hydrogen transition for near-zero emissions
- BF-to-EAF Conversions: ArcelorMittal Dofasco (Canada) planning $1.8B investment to replace blast furnaces with EAF; Algoma Steel investing $880M in similar transition
- Carbon Capture & Storage (CCS): ArcelorMittal FEED study for commercial-scale CCS targeting 95% CO2 capture; research indicates CCS may be more cost-effective than hydrogen in near-term (7% vs 79% cost increase)
- EAF Expansion: U.S. Steel's Big River Steel represents state-of-the-art EAF technology; Nucor continuing to expand scrap-based capacity with renewable energy integration
- Hydrogen Injection in BF: Cleveland-Cliffs Indiana Harbor completed H2 injection trials in blast furnaces (January 2024) achieving up to 20% emissions reduction
- Policy Support: Inflation Reduction Act (IRA) and Bipartisan Infrastructure Law providing tax credits and funding for clean steel; federal procurement requirements driving green steel demand
- Decarbonization Pathways: Industry analysis shows CCS integration with existing BF-BOF or transition to NG-DRI-EAF (with future H2-DRI conversion) as primary routes to net-zero by 2050
- Regional Advantage: North America currently produces lowest carbon steel globally; strong scrap availability, renewable energy resources, and innovation ecosystem supporting transition

## 🔬 Key Technology Pathways & Economics

- Primary Pathway 1 - CCS Integration: Retrofitting existing BF-BOF facilities with carbon capture can achieve 60-90% emissions reduction; cost increase estimated at 7% vs conventional steel
- Primary Pathway 2 - NG-DRI-EAF: Natural gas-based DRI feeding EAF as intermediate step; Cleveland-Cliffs Toledo facility demonstrates commercial viability at 1.9 Mt/y scale
- Long-term Pathway - H2-DRI-EAF: Green hydrogen DRI offers near-zero emissions but faces cost challenges (~79% increase with current green H2 costs vs 18% with blue H2); requires clean hydrogen infrastructure buildout
- Scrap-EAF Expansion: Increasing EAF share from 59% enables lower emissions (0.3-0.7 tCO2/t steel vs 1.8-2.0 for BF-BOF); limited by scrap availability as global EAF adoption grows
- Hydrogen Competition: Research indicates steel must compete with other sectors (aviation, chemicals, transport) for limited clean hydrogen supply in net-zero transition
- Cost Comparison (DOE estimates): BF-BOF+CCS: $500-600/ton liquid steel; H2-DRI-EAF: $550-800/ton; economics favor CCS or blue H2 in near-term
- Infrastructure Needs: North American Hydrogen Backbone initiative planning H2 pipeline network; CO2 transport and sequestration infrastructure critical for CCS pathways
- Regional Advantages: Abundant natural gas for NG-DRI; geological CO2 storage capacity; established scrap collection systems; renewable energy potential for green H2

## 🏭 Major Decarbonization Projects (Announced/Underway)

- ArcelorMittal Dofasco (Hamilton, ON): $1.8 billion CAD investment to replace coal-fired blast furnaces with EAF technology; target 60% emissions reduction; commissioning planned for 2028
- Algoma Steel (Sault Ste. Marie, ON): $880 million CAD transformation to EAF-based production; eliminating blast furnaces and coke ovens; expects 70% reduction in CO2 emissions; one furnace operational 2024
- Cleveland-Cliffs Hydrogen Trials: January 2024 blast furnace hydrogen injection demonstration at Indiana Harbor achieving up to 20% emissions reduction; evaluating scaling potential across BF fleet
- Cleveland-Cliffs Toledo DRI: 1.9 Mt/year DRI plant capable of up to 30% hydrogen blending; studying full H2-DRI conversion pathways
- U.S. Steel Big River Steel Expansion: Adding third phase increasing capacity to 3.3 Mt/year; state-of-the-art EAF technology with endless casting and rolling
- Nucor Brandenburg (Kentucky): New $2.7 billion sheet mill (3 Mt/year capacity) with advanced EAF technology; operational 2025
- Steel Dynamics Sinton (Texas): $2.1 billion flat-roll mill (3 Mt/year); largest single-phase flat-roll investment in decades; operational 2024
- ArcelorMittal CCS Feasibility Studies: Evaluating commercial-scale carbon capture at North American integrated facilities targeting 95% CO2 capture rates

## ⚡ Energy & Infrastructure Considerations

- Electricity Demand: EAF steelmaking requires 400-500 kWh per ton; large-scale EAF expansion needs grid capacity upgrades and clean electricity supply
- Natural Gas Supply: North America's abundant shale gas supports NG-DRI pathway as transition technology to eventual H2-DRI
- Hydrogen Infrastructure Gap: Clean hydrogen production and distribution infrastructure underdeveloped; DOE Hydrogen Hubs program targeting regional H2 economies
- Scrap Supply Chain: U.S. generates ~70 million tons steel scrap annually; organized collection and processing infrastructure well-established
- CO2 Sequestration: Favorable geology in Gulf Coast, Midwest for geological CO2 storage; Class VI well permitting critical bottleneck
- Renewable Energy Integration: Opportunities for wind/solar PPAs especially for EAF operations; some facilities exploring on-site renewable generation
- Water Resources: BF-BOF facilities require significant water; DRI processes less water-intensive; regional water availability considerations for technology choices

## 📈 Policy & Market Drivers

- Inflation Reduction Act (2022): Tax credits for clean hydrogen ($3/kg for green H2), CCS (45Q credits up to $85/ton CO2), clean electricity; significant incentives for green steel investments
- Buy Clean Initiatives: Federal and state procurement preferences for low-carbon materials; GSA pilot programs tracking embodied carbon in construction steel
- EPA Regulations: Updated air quality standards driving pollution control investments; potential future carbon pricing or performance standards
- USMCA Trade Rules: North American content requirements supporting regional supply chain integration and potentially incentivizing clean steel production
- Section 232 Tariffs: 25% tariff on steel imports maintains domestic price premiums that could help finance green steel transitions
- State-Level Programs: California, New York, others implementing Buy Clean policies; RGGI carbon pricing in northeastern states
- Automotive OEM Pressure: Major automakers setting scope 3 emissions targets requiring lower-carbon steel from suppliers
- Green Steel Standards: ResponsibleSteel certification, SteelZero commitments driving market demand for near-zero emissions steel

## 🌍 Global Context & Competitiveness

- Carbon Border Adjustments: EU CBAM (operational 2026) will impact North American exports to Europe; potential U.S. reciprocal measures under discussion
- Comparative Advantage: North American steel already lowest carbon intensity globally (~1.3 tCO2/t vs global average 1.9 tCO2/t) due to high EAF share
- China Competition: China produces 50%+ of global steel; massive overcapacity and lower environmental standards create unfair competition concerns
- Import Penetration: U.S. imports ~25% of steel consumption; protection of domestic industry critical for maintaining decarbonization investments
- Technology Leadership: North American innovations in EAF technology (thin-slab casting), hydrogen injection trials position region as potential clean steel technology exporter
- Green Premium: Current estimates suggest green steel commands 10-30% price premium; market willingness to pay still developing

## 📚 Resources & References

Mixed public sources including Global Energy Monitor (GEM) Global Iron and Steel Tracker, World Steel Association, company websites, and industry reports. For plant-level accuracy and latest updates, verify with GEM.wiki.

Note: This map represents major steel producers (≥500,000 tonnes/year capacity). Click markers for plant details and links to additional information.