Iron ore pellet company Ferrexpo has estimated the total capital expenditure for decarbonisation at $3.3 billion to be invested by 2050.
The group plans to carry out a large-scale modernization of mining, processing and logistics operations, reports GMK Center.
It is noted that Ferrexpo plans to reduce emissions by 35 million tons by 2050. To achieve this goal, the Group will have to spend $145 to reduce each ton of emissions.
The article emphasized that more than 80% of the estimated capital costs for decarbonization are related to the introduction of green hydrogen in pelletizers and the construction of renewable energy facilities, in particular SPPs.
Both projects are expected to be implemented after 2030.
The authors added that Ferrexpo plans to use "green" electricity coming directly from the Ukrainian network.
"As a constituent of the steel value chain, we understand the importance of climate change and how this point in time represents a pivotal moment for the steel sector, with major investment planned in the coming decades," said Ferrexpo Chief Executive Jim North.
He added that the production of high-quality iron ore with low emissions will help Ukraine to be at the forefront of the transition to green steel.
Earlier, EcoPolitic wrote, that Ferrexpo boosted decarbonisation targets, namely, plans to reduce Scope 1 and 2 carbon emissions by 50% by 2030 and Scope 3 by 10%.
As EcoPolitic previously reported, in Ukraine from January 1, 2024 the State Decarbonization Fund will be operational and energy efficient transformation.
