Image: Molten iron being tapped from Boston Metal’s Molten Oxide Electrolysis cell.
Source: Boston Metal.
We’re incredibly thrilled to announce our investment in Boston Metal’s $60M Series B, to support the Company’s efforts as they scale up to produce sustainably-made, carbon-neutral steel at industrial volumes. Boston Metal has developed an innovative process called Molten Oxide Electrolysis that uses renewable electricity to make emission-free steel. This investment underscores BMW’s commitment to sustainability and reflects our belief that Boston Metal is at the forefront of disrupting an incumbent and extremely pollutive industry.
Existing steel-making methods are very dirty and harmful to the environment. Today, for every ton of steel produced, ~2 tons of CO2 is released into the atmosphere. At ~2B tons of steel produced annually (equivalent to 250K Eiffel Towers or 40K World Trade Centers), the industry is responsible for approximately 4B tons of CO2 emitted each year or ~8% of annual CO2 emissions. Currently, the two main ways of producing steel are the blast furnace and the electric arc furnace, and both unfortunately produce CO2 as a byproduct.
Image: Steel production using a blast furnace and basic oxygen furnace.
Source: ArcelorMittal Climate Action Report.
The blast furnace method, responsible for ~75% of annual steel production, requires a number of intermediary steps to reach a final product.
Coal is heated to extremely high temperatures to become coke (i.e. concentrated carbon).
Coke and iron ore are added to a blast furnace, where hot air is blown through and causes the coke to burn and produce carbon monoxide.
The carbon monoxide reacts with iron ore to release the iron molecules and binds with the oxide molecules to produce CO2.
The molten iron is then added to a basic oxygen furnace where pure oxygen is blown through, removing the remaining impurities and resulting in liquid steel.
Image: Steel production using an electric arc furnace.
Source: ArcelorMittal Climate Action Report.
The other main method, the electric arc furnace (EAF), is responsible for the remainder of steel production. From a production standpoint, the EAF is similar to the MOE process, but it requires scrap steel as an input. Scrap steel, however, is not readily available since steel is widely used long-standing structures (e.g. buildings) and cannot be easily recovered. Alternatively, the EAF can use directly reduced iron as an input, but then we run into the problem of having to use natural gas in a dirty and complicated reduction process. EAF, therefore, will likely never become the primary method for steel production.
Unfortunately, both existing processes generate CO2 as an unwanted byproduct, emitting on average anywhere from 1.5-2.3 tons of CO2 for every ton of steel produced. Despite being highly pollutive, the demand for steel is strong and growing given all of its useful benefits. Assuming our consumption patterns remain the same, demand for steel is expected to grow from 1.9B tons of steel in 2019 to 2.5B+ tons of steel in 2050. It is clear that there is an urgent need to decarbonize this sector if we are to continue developing at the pace we are now.
Image: Boston Metal’s Molten Oxide Electrolysis (MOE) process compared to existing steel-making processes.
Source: Boston Metal.
Boston Metal, with its disruptive process of making emission-free steel, is flipping the entrenched steel industry on its head. Our investment will enable Boston Metal to scale its technology to full industrial size and also validate its green steel by end customers.
We believe that Boston Metal is leading the charge on cleaning up the steel industry with an innovative steel-making process that is not only greener for the environment, but also more efficient and (at scale) cheaper than existing methods. This investment reflects our commitment to support purpose-driven entrepreneurs who are making material impacts on the world. We are extremely excited to invest in Boston Metal’s Series B and join Tadeu Carneiro and the team in their efforts to decarbonize a heavy metal sector!