Generic Hero BannerGeneric Hero Banner
Latest market news

Steelmakers define biochar specifications

  • : Biomass, Metals
  • 24/05/03

Woody biomass — particularly wood chips — would be an ideal feedstock for producing carbonised biomass (biochar) with at least 65pc carbon content that could be used as a reductant in steelmaking to replace fossil fuels, delegates heard at the Argus Biomass conference in London last week.

"The main driver for us is to use [biochar] as a reductant, not for [process heat generation], so the driver is the carbon" content when defining the specifications of the biomass we can use, steelmaker ArcelorMittal's European buyer of biomass and alternative reductants,Steve Sirdey, said. Particle size distribution of biochar is another key specification, he said.

Biochar used in a blast furnace needs to have at least 65pc carbon content, with a minimum particle size distribution of 6mm corresponding to the correct size to fit existing grinding equipment. Steelmaking in an electric arc furnace requires at least 80pc carbon-intensive biochar, with a particle size at least 10mm for top charge and 3-5mm for injection, Sirdey said.

ArcelorMittal aims to replace up to 20pc of its fossil fuels injected today — pulverised coal injection in the blast furnace and anthracite in the electric arc furnace — without changing existing production processes, Sirdey said. "We can reach up to 2.8mn t/yr of [biochar consumption] with at least 65pc carbon content… If everything works well, ArcelorMittal is able to commit on long-term offtake contracts after all the… laboratory and other testing," he added.

As we are replacing coal, price will be another main criteria in deciding on how much fossil fuel to replace with biochar, Sirdey said.

"With the existing technology and the information we have, we think wood chips are the best feedstock at the moment in terms of chemical composition," Tata Steel's biomass and coal procurement manager, Frank van der Zon, said. Tata Steel would need to consume around 250,000 t/yr of biochar for its steelmaking unit in the Netherlands, which would require around 1.2mn-1.5mn t/yr of wood chip feedstock.

Steelmakers also have to consider whether to buy biochar or build on-site biochar production capacity. "Our goal is to be offtakers and commit to volumes. To meet decarbonisation targets, we believe that the biochar plant needs to be close to the feedstock," Sirdey said. ArcelorMittal commissioned the first of two 37,500 t/yr biochar producing units at its Torero plant in Ghent, Belgium, in December. The unit will use around 90,000 t/yr of waste wood as feedstock.

Unlike for power generation, the EU has not regulated the use of biomass by steelmakers or other hard-to-abate sectors, with companies following local regulations in the areas that they operate. But steelmakers are setting up a voluntary standard for the biomass to be certified for sustainability, with Tata Steel and ArcelorMittal aiming to consume only biomass that complies with EU renewable energy directive standards.

"We need to prove that biomass is the right feedstock… and have the responsibility to make sure that the feedstock is sustainably sourced," van der Zon said.

The majority of the steel industry's decarbonisation will be through technology change — switching to electrification with the electric arc furnace, which will reduce emissions by 70-80pc, van der Zon said. The remaining emissions are the hard-to-abate part, where using biomass to replace fossil fuels would help the sector to "become completely carbon neutral", he said.


Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

US adds 177,000 jobs in April, jobless rate steady


25/05/02
25/05/02

US adds 177,000 jobs in April, jobless rate steady

Houston, 2 May (Argus) — The US added 177,000 jobs in April, topping expectations, even as the new US administration's campaign of tariffs against allies and trading partners heightened business and consumer uncertainty. Economists surveyed by Trading Economics had forecast job gains of 130,000 for April. The unemployment rate held steady at 4.2pc in April, the Bureau of Labor Statistics (BLS) reported. Job gains for March were revised lower by 43,000 to 185,000. The unexpectedly strong job report comes two days after the government reported the economy contracted at a 0.3pc annual rate in the first quarter, largely on a surge in imports as companies sought to build inventory ahead of the impacts of President Donald Trump's import tariffs. Consumer and business confidence have tumbled and economists have raised the odds of a US recession this year. US job gains averaged 152,000 in the 12 months prior to April. Federal government employment declined by 9,000 jobs in April and has fallen by 26,000 since January as mass federal layoffs take effect. Employees on paid leave or receiving severance pay are counted as employed, BLS said, so most of the announced federal job cuts do not yet show up in the data. Health care added 51,000 jobs in April, while transportation and warehousing added 29,000 jobs, more than double the average in the prior 12 months. Financial activities added 14,000 jobs. Construction added 11,000 jobs and manufacturing lost 1,000 jobs. Leisure and hospitality jobs grew by 24,000 and health care and social assistance added 78,000 jobs. Average hourly earnings rose by a 3.8pc annual rate, unchanged from the pace in March. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

South Australia closes Hydrogen Power SA office


25/05/02
25/05/02

South Australia closes Hydrogen Power SA office

Sydney, 2 May (Argus) — The state government of South Australia has rolled its Office of Hydrogen Power SA (OHPSA) into the Department of Energy and Mining (DEM), after scrapping plans for a 250MW electrolyser and 200MW hydrogen-fired power station. The OHPSA has been absorbed into the other state department, a spokesperson for SA energy minister Tom Koutsantonis said on 2 May. This comes after the state cut the A$593mn ($381mn) it had promised for its Hydrogen Jobs Plan in early 2025. The funds were reallocated to subsidise the 1.2mn t/yr Whyalla steelworks, which entered administration on 19 February . The associated Office of Northern Water Delivery, which was intended to support the green hydrogen sector in the state's upper Spencer Gulf region with new water pipeline supply, has also been incorporated within the DEM, Koutsantonis said on 1 May. SA's other major hydrogen hub planned at nearby Port Bonython was also overseen by the OHPSA. Development agreements with five companies have been signed for Port Bonython, including with London-based energy company Zero Petroleum for an e-SAF plant . SA is aiming to transition the ageing Whyalla steelworks to develop low emissions iron and steel products, but administrator KordaMentha is yet to finalise a buyer for Whyalla's controlling company OneSteel, which was formerly owned by UK-based GFG Alliance. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australia's Coalition eyes power, resource funding cuts


25/05/02
25/05/02

Australia's Coalition eyes power, resource funding cuts

Sydney, 2 May (Argus) — Australia's federal Coalition opposition has announced it will cut key energy rebates and resource sector subsidies, if elected on 3 May, to reduce forecast future budget deficits. The Peter Dutton-led opposition will cut programs, including the Labor government's A$20bn ($12.8bn) Rewiring the Nation transmission plan, and the A$15bn National Reconstruction Fund aimed at underwriting green manufacturing using domestic minerals. It will also unwind electric vehicle tax concessions to save A$3.2bn, and cancel planned production tax credits for critical minerals processing and green hydrogen estimated to cost A$14.7bn. Combined savings measures will improve the budget's position by A$13.9bn over the four years to 2028-29, the Coalition said on 1 May, cutting debt by A$40bn during the same timeframe. The announcement comes as opinion polls show Australia's next federal government is likely to force one of the two major parties into minority, after a campaign where cost-of-living relief promises have trumped economic reform policy. The centre-left Labor party is more likely than the conservative Coalition to form government at the 3 May poll. It holds a thin majority of just three seats in parliament's main chamber, the House of Representatives, meaning a swing against it would force it to deal with minor parties such as the Greens and independent groupings. Promising a stable government, as Australia emerged from Covid-19, Labor had benefited from a resources boom as Russia's invasion of Ukraine led LNG and coal receipts to skyrocket and China's emergence from lockdowns revitalised its demand for iron ore, which jointly form the nation's main commodity exports. But as markets adjust to a period of protectionist trade policy and predictions of a slowdown in global growth abound, economists have criticised the major parties' reluctance to embrace major reform on areas such as taxation, while continuing to spend at elevated levels post-pandemic. Australia's resource and energy commodity exports are forecast to fall to A$387bn in the fiscal year to 30 June 2025 from A$415bn in 2023–24. The Office of the Chief Economist is predicting further falls over the next five years, reaching A$343bn in 2029-30, lowering expected government revenue from company tax and royalties. Gas The Coalition has pledged a domestic reservation scheme for the east coast, forcing 50-100PJ (1.34bn-2.68bn m³/yr) into the grid by penalising spot LNG cargoes. Australia's upstream lobby has opposed this, but rapidly declining reserves offshore Victoria state mean gas may need to be imported to the nation's south, depending on the success of electrification efforts and an uncertain timeline for coal-fired power retirements. Labor has resisted such further gas interventions , but it is unclear how it will reverse a trend of rising gas prices and diminishing domestic supply, despite releasing a future gas plan last year. The party is promising 82pc renewables nationally by 2030, meaning it will have to nearly double the 2025 year-to-date figure of 42pc. This could require 15GW of gas-fired capacity by 2050 to firm the grid. On environmental policy, narrowing polls mean Labor's likely partners in government could be the anti-fossil fuel Greens and climate-focused independents — just some of the present crossbench of 16 out of a parliament of 151. The crossbench may drive a climate trigger requirement in any changes to environmental assessments, which could rule out new or brownfield coal and gas projects. Coal has been conspicuously absent from policy debates, but Labor has criticised the Coalition's nuclear energy policy as expensive and unproven, while the Coalition has said Labor's renewables-led grid would be unstable and costly because of new transmission requirements. The impact of the US tariff shock that dominated opening days of the month-long election campaign remains unclear. Unlike Canada, Australia is yet to be directly targeted by US president Trump's rhetoric on trade balances and barriers. But the global unease that has set in could assist Labor's prime minister Anthony Albanese, as he presents an image of continuity in an uncertain world economy. Australia's main exposure to Trump tariffs is via China, its largest trading partner and destination for about 35pc of exports, including metal concentrates, ores, coal and LNG. A downturn in the world's largest manufacturer would spell difficult times ahead for Australia, as it grapples with balancing its budget in a normalising commodity market. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

GM cuts guidance on up to $5bn tariff exposure


25/05/01
25/05/01

GM cuts guidance on up to $5bn tariff exposure

Houston, 1 May (Argus) — Automaker General Motors (GM) revised its 2025 guidance lower today to reflect $4bn-5bn of exposure to auto tariffs imposed by the Trump administration. Full-year 2025 profit guidance was lowered to a $8.2bn-10.1bn range, from the $11.2bn-12.5bn guidance given in the company's fourth quarter earnings call earlier this year. The new guidance takes into account clarifications to tariffs already imposed on automakers earlier this week. GM's tariff exposure includes $2bn of vehicles imported from South Korea and tariffs on autos imported from Mexico and Canada, as well as "indirect material imports." GM said it expects to offset 30pc of the exposure by producing an additional 50,000 full-size trucks/yr at its Fort Wayne, Indiana, plant and expanding battery module assembly in the US. GM will also work to ensure its supply chain is US-Mexico-Canada Agreement (USMCA) compliant and nearshore its production, executives said. More than 80pc of GM's supply chain is USMCA compliant, most of which is based in the US. US president Donald Trump on 29 April offered to offset a 25pc tariff on imported auto parts scheduled to be imposed on 3 May and to exempt auto parts from accumulating these and and other import tariffs. Trump imposed a 25pc tariff on imported cars on 3 April. GM on 29 April rescheduled its earnings call but released its first quarter earnings on schedule that day. The company reported sales of 693,000 vehicles in the US in the first quarter, up by 17pc from the prior-year quarter. Electric vehicle (EV) sales rose by 94pc to 32,000 units in the same period. Global sales rose by 7pc to 1.44mn vehicles in the first quarter compared to the first quarter of 2024. GM posted a $2.8bn profit in the first quarter, down by 7pc from a year earlier, which was partially attributed to higher costs. By Marialuisa Rincon Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more