22 May
2024
Ferrexpo plc
("Ferrexpo", the
"Company" or the
"Group")
Life Cycle Assessment confirms lower
emissions benefits using Ferrexpo DR pellets
Ferrexpo plc (LSE: FXPO), a premium
iron ore pellet producer and supplier to the global steel industry,
announces the findings of its Life Cycle Assessment ("LCA"),
completed in collaboration with environmental consultants Ricardo
Plc to evaluate the Company's contribution to potential
environmental benefits related to steel production using its direct
reduction (DR) pellets. The DR pellet is a type of iron ore used in
steelmaking whereby either natural gas, electricity (including from
clean sources) or hydrogen is used as the means of converting iron
ore to steel, rather than coal, which is used by blast furnace
operators. DR pellets can also be used in the Blast Furnace-Basic
Oxygen Furnace ("BF-BOF") route to reduce CO2 emissions
further.
Findings of the LCA show that the
Direct Reduced Iron - Electric Arc Furnace ("DRI-EAF") steelmaking
process, using Ferrexpo's high-grade premium Direct Reduction (DR)
pellets, offers decarbonisation opportunities for steel
manufacturers with reductions of 37% embodied carbon emissions,
compared to the more traditional sinter-operated BF, in the BF-BOF
route of steelmaking. The associated embodied carbon value of
Ferrexpo DR pellets was calculated to be 172kg CO2
equivalent per tonne of DR pellets.
Ferrexpo is using this initial LCA
to explore how to further reduce its impacts across a range of
environmental issues including water and waste. The Group is also
engaging with its customers on these initiatives, including the
possibility for further LCAs to better understand the impact of its
other premium high grade iron ore products.
Commenting on the emissions benefits of using Ferrexpo's
premium high grade DR pellets, Yaroslavna Blonska, Acting Group
Chief Marketing Officer commented:
"As a supplier to the global steel industry, we are aware that
our customers, and end users, want to reduce carbon emissions in
steel making. It is pleasing therefore that the Life Cycle
Assessment we completed with Ricardo plc, which was also
independently verified, has determined that when a steel
manufacturer uses Ferrexpo's DR pellets in an electric arc furnace,
to produce a tonne of steel billet, 37% less carbon is emitted
compared to traditional steel production methods. This means that
Ferrexpo and Ukraine can play a leading role in enabling the
transition to greener steel, not only today, during a time of war,
but also in the future, when we can return to full capacity, and
contribute meaningfully to the reconstruction of
Ukraine."
Background to the LCA
The study compared two distinct
production methods for SAE 1006 grade steel: a DR pellet-Direct
Reduction Iron ("DRI")-Electric Arc Furnace ("EAF") route and a
sinter-Blast Furnace ("BF")-Basic Oxygen Furnace ("BOF") method,
the latter being the more traditional steel making route which
relies more heavily on coal and coke usage, rather than natural gas
and electricity which can be from clean sources. The study assessed
the embodied carbon impacts of each route using the Global Warming
Potential ("GWP") indicator which reports in terms of carbon
dioxide equivalents (CO2 equivalent), as well as a range
of other potential environmental impacts.
In terms of the underlying data used
for the study, we used historical activity data from 2021 (the most
recent data which was available at the time of the study) for our
mining, beneficiation and pelletisation operations, as well as
collaborating with several iron and steel manufacturers to obtain
data for those stages outside of our control. Where data was not
available, reputable LCA databases were used to gap fill to ensure
that all necessary impact sources were captured. The study was
carried out using SimaPro software, using the widely used ecoinvent
database for secondary data, and complies with ISO 14040 and
ISO 14044, the key underlying standards for LCA. Furthermore, it
was independently critically reviewed and found to be in accordance
with these standards.
For further information, please
contact:
Ferrexpo:
Nick Bias
n.bias@ferrexpo.ch
+44 (0)20 7389 8305
+44 (0)7733 177 831
Tavistock:
Jos
Simson
ferrexpo@tavistock.co.uk
+44 (0)20 7920
3150
Gareth
Tredway
+44 (0)7785 974 264
Notes to Editors:
Ferrexpo is a Swiss headquartered
iron ore company with assets in Ukraine and a premium listing on
the London Stock Exchange in the FTSE 250 index (ticker FXPO). The
Group produces high-grade iron ore pellets, which are a premium
product for the global steel industry and enable reduced carbon
emissions and increased productivity for steelmakers when the
Group's iron ore pellets are converted into steel, compared to more
commonly traded forms of iron ore. Ferrexpo's operations have been
supplying the global steel industry for over 50 years. Before
Russia's invasion of Ukraine in February 2022, the Group was the
world's third largest exporter of pellets to the global steel
industry. The Group has a customer base comprising of premium steel
mills around the world. For further information, please
visit www.ferrexpo.com.