SEATTLE (Scrap Monster): Steel Dynamics, Inc. (SDI) announced strategic joint venture partnership with leading biocarbon products producer, Aymium, aimed at reducing greenhouse gas emissions.
The joint venture entity will operate under the name SDI Biocarbon Solutions, LLC. SDI will own 55% of the joint venture, while the remaining 45% will be owned by Aymium. It will construct and operate a biocarbon production facility, which will supply SDI’s electric arc furnace steel mills with a renewable alternative to fossil fuel carbon. The capital investment for the facility is estimated at around $125-150 million. The initial production capability will be more than 160,000 metric tons per year, with operations expected to begin by late next year.
Mark D. Millett, Chairman, President, and Chief Executive Officer of SDI noted that the strategic joint venture will significantly reduce its steelmaking greenhouse gas emissions in a cost-effective manner. It will reduce SDI’s Scope 1 steelmaking greenhouse gas emissions intensity by 20-25%.
Meantime, James Mennell, Chief Executive Officer, Aymium said that the joint venture is part of its mission to accelerate the transition away from fossil fuels and reduce the impact on the environment.