The
Washington-based American Iron and Steel Institute (AISI) has released
recommended steel industry greenhouse gas (GHG) emissions calculation
guidelines designed to provide “consistent and comprehensive data across the
industry on GHG emissions from steel production.”
AISI
says the guidelines offer “a focus on product-level disclosures and
corporate-level reporting.” The proposed guidelines are the result of what AISI
calls months-long collaboration between United States-based steel producers and
institute staff.
“The
American steel industry’s leadership on reducing emissions is well-known, but
there are often disparate sources and avenues for calculating and reporting,”
says Kevin Dempsey, AISI president and CEO.
“Our
industry wants to remain transparent, accurate and outspoken in our advocacy on
decarbonization-related activities —and these guidelines can be an important
tool to achieve those goals,” says Dempsey. “A consistent set of data will help
ensure policymakers and other stakeholders employ the most accurate information
in their decision-making.”
Among
what AISI calls highlights of the recommendations for GHG emissions calculation
are:
•
Calculations should include a comprehensive “cradle-to-gate” (all processing
steps required to manufacture a defined product) scope analogous to Scope 1, 2,
and upstream raw materials, energy, and transportation Scope 3 emissions;
•
Calculation of direct (Scope 1) emissions should use the U.S. Environmental
Protection Agency (EPA) GHG Reporting Rule methodology for U.S.-based
facilities;
•
Emissions from the purchase of electricity should be based on local electricity
grid factors and reflect renewable energy instruments in specified instances;
and
•
Emissions should be calculated at the product level for trade, procurement and
environmental product declaration purposes, while a company-wide basis should
be used for corporate reporting
Dempsey
says the recommendations are not intended to be a formal industry standard, but
a means to bolster efforts underway by American and global steel producers and
others working to develop GHG emissions calculation methodologies.
Executives
from several steelmakers in the United States have been touting their low-GHG
credentials, including electric arc furnace (EAF) producers Nucor Corp. and Steel Dynamics Inc.,
plus Cleveland-Cliffs,
with capacity that is predominantly blast furnace/basic oxygen furnace
technology.
Europe-based
carbon and stainless steel producer SSAB, which has scrap-fed EAF mills in the
United States in Alabama and Iowa, has announced its intention to produce
“fossil-free” steel by 2026. The steelmaker recently selected Minnesota-based
waste and recycling truck maker McNeilus Truck and Manufacturing Inc. as a partner to
use its fossil-free steel in an early, pilot application.