Massachusetts-based Boston Metal announced that it has raised $120 million in its latest investment round from the world’s 2nd largest steel maker, ArcelorMittal. The investment will help the startup launch green steel by 2026 and help global companies reduce the heavy greenhouse gas emissions that come out of the production of steel.
It is estimated that around 7-8% of all harmful emissions come from steel producers. This is because steel manufacturers typically use traditional production methods involving coal furnaces. With recent concerns about climate change, steel companies are under immense pressure to cut down the use of coal furnaces and adopt green technologies.
Boston Metal’s technology uses molten oxide electrolysis (MOE), a process that uses electricity to produce steel from iron ore. The process is energy-efficient and generates minimal waste, reducing the carbon footprint of steel production. The company claims its technology can reduce greenhouse gas emissions by 90% compared to traditional steel production methods.
The company has also received investments from Microsoft’s Climate Innovation Fund and SiteGround Capital. Brandon Middaugh, director of Microsoft Climate Innovation Fund stated that ‘The technology Boston Metal is developing has the potential to deliver affordable green steel at scale, helping to drive cross-industry decarbonization, which is increasingly critical for companies with carbon reduction targets, such as Microsoft.’
Green steel production is still in its early stages but holds significant potential for the industry’s future. With increasing pressure from governments and consumers to reduce emissions and transition to more sustainable practices, green steel production is poised to become a significant contributor to a greener and more sustainable future.
