Char Technologies has received a $6.6 million CAD strategic investment by one of the world’s leading steel and mining companies, ArcelorMittal SA, and its XCarb Innovation Fund.
The cleantech company also signed a memorandum of understanding (MOU) that will see ArcelorMittal SA purchase biocarbon produced at Char’s Thorold, Ontario facility.
Char also won ArcelorMittal’s inaugural XCarb Accelerator Programme.
The XCarb Innovation Fund’s global mandate is to invest in companies developing breakthrough technologies that will accelerate the steel industry’s transition to carbon-neutral steelmaking. ArcelorMittal’s investment in Char marks the fund’s seventh global investment and first ever in a Canadian company.
The investment followed testing by ArcelorMittal SA of Char’s proprietary technology that transforms wood waste into renewable natural gas and biocarbon.
ArcelorMittal’s Canadian flat steel operation in Hamilton, ArcelorMittal Dofasco, has been collaborating with Char to test the use of its biocarbon as a partial replacement for fossil coal in its steelmaking processes. According to the company, Char’s biocarbon enables an approximately 91 percent reduction in greenhouse gas emissions compared to metallurgical coal.
ArcelorMittal claims a presence in 60 countries with primary steelmaking facilities in 16 countries. The company says it generated revenues of $106.5 billion CAD ($79.8 billion USD) in 2022.
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In addition to securing investment through ArcelorMittal’s XCarb Innovation Fund, Char also won ArcelorMittal’s inaugural XCarb Accelerator Programme. The programme searches for the best companies and brightest breakthrough technologies that hold the potential to accelerate the decarbonisation of the steel industry.
ArcelorMittal Dofasco and Char claim the biocarbon is the first in Canada for steelmaking, and is targeted for trial in the electric arc furnace with the aim of reducing greenhouse gas (GHG) emissions by 35,0000 tonnes over four years. This agreement enables larger scale trials in the electric arc furnace process.
This strategic partnership will be instrumental in propelling Char’s mission to revolutionize carbon-free solutions within heavy industries, according to the company, which intends to use the net proceeds of the investment for general working capital needs, including advancing the development of both contracted and earlier stage projects.
The XCarb Innovation Fund investment follows the Canadian and Ontario governments’ December 2022 investments of a collective $12.8 million CAD in Char. Those investments were aimed at speeding up production as well as research and development initiatives at Char’s Thorold, Ontario facility.
Feature image courtesy Char Technologies.
