TT Iron Steel Company Limited
(TTIS) has signed a sale and purchase agreement with Christopher Kelshall, the
liquidator of ArcelorMittal Point Lisas Ltd to acquire the iron and steel plant
located in the Point Lisas Industrial Estate, Couva, Trinidad. Completion of
the transaction is subject to approval by the Government of Trinidad &
Tobago.
The plant is claimed to be one of the largest steel mills in the
Americas pairing low carbon emissions, natural gas-based Direct Reduced Iron
(DRI) technology with Electric Arc Furnaces for steelmaking. Originally
constructed in 1980, the plant deployed cutting edge technology at the time
which was renewed by continuous investment over the years. Initial
refurbishment and restart of the plant is expected to cost between US$150-200
million (TT$1-1.4 billion) over the next 24 months with further investment required
thereafter.
Currently, 70% percent of the world’s steel is made using
traditional coal-based blast furnaces that emit 2.0 to 2.5 tonnes of CO2 per
tonne of steel produced. The remaining 30% is made using electric arc furnace
technology (0.8 to 1.5 tonnes of CO2 per tonne), primarily fed by
recycled/scrap steel and/or low carbon emission Direct Reduced Iron, as at
Point Lisas.
Direct Reduced Iron is produced from iron ore smelted with natural
gas and/or hydrogen which has lower carbon emissions than coal-based
technologies. The plant historically used natural gas but TTIS plans to
transition to green hydrogen in the coming years as it becomes commercially
available. This, it is claimed, will reduce the plant’s carbon intensity to 0.4
tonnes of CO2 per tonne of steel produced.
More than 1,000 jobs will be created during the refurbishment and
start-up phase and, when fully operational, the plant will create long-term
employment for 500 skilled workers . TTIS believes that the restart of the
plant will indirectly create many more jobs – for instance through maintenance
and construction services, port services, downstream manufacturing (rebar,
fencing and so on), demand for green hydrogen and renewable energy.
Steel industry veteran Gus Hiller, founder, president and CEO,
spent six years of his career on the Point Lisas estate at the helm of Nucor
and has managed and operated steel plants across United States of America and
Canada.
“We believe there is
great potential for the plant to return to the forefront of global steelmaking
technology and performance."
Gus Hiller,
founder, president and CEO of Gus Hiller, founder, president and CEO
Hiller commented: “We believe there is great potential for the
plant to return to the forefront of global steelmaking technology and
performance. Our team was drawn to Trinidad and Tobago due to its strategic
location, skilled workforce, potential to be a hydrogen leader and an enabling
business environment. We are confident we will be able to bring on stream and
operate an efficient, cutting-edge steel mill which we expect and hope will
start production within the next 12 to 18 months; certainly, no later than
December 2024. The restart of this plant will create a long-term sustainable
industry that generates secure employment and wealth for the citizens of
Trinidad & Tobago for generations to come.”
Joel “Monty” Pemberton, chairman of TTIS, said: “The restart of
the local steel industry continues the vision of the Trinbagonian pioneers who
conceived it, and we are enhancing this vision with the full use of green
hydrogen in the shortest possible time frame; this is the fuel of the future.
TT Iron is passionate about the development of the downstream manufacturing
sector of higher value iron and steel products in Trinidad & Tobago, this
will further increase employment and wealth creation in the country. Our ESG
principles are anchored in producing lower carbon products, the promotion of
entrepreneurial activity in Trinidad & Tobago through the development of
the downstream manufacturing sector, establishing an apprenticeship programme
for youth development, thereby creating sustainable employment for generations
in the clean energy industry”.