Cleveland-Cliffs CEO says company might scrap planned environmental upgrade in Middletown

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Cleveland-Cliffs

Cleveland-Cliffs is wavering on whether to move forward with plans to decarbonize its Middletown Works

Cleveland-Cliffs says it may reverse an earlier announced decision for a major environmental upgrade to its Middletown Works. CLEVELAND, Ohio - Cleveland-Cliffs is wavering on whether to move forward with plans announced earlier this year to decarbonize its Middletown Works, a decision itthat the Biden Administration earmarked for slashing emissions in the industrial sector. Cleveland-Cliffs said that Department of Energy selected it for award.

He said that even with the help of the federal grant, the steel produced would carry higher costs, a price buyers - mostly in the auto industry - he said are unwilling to pay. “There are only two ways to fix that: One is they change their minds and pay. So far, not very successful. The other way is for me to go back to what I was before and emit more,” Goncalves said. “That’s a decision that I’m going to have to make very soon.”, located between Cincinnati and Dayton, calls for replacing the blast furnace, which the runs on a derivative of coal called coke, and converting Middletown into a Direct Reduced Iron Plant with two electric melting furnaces.

This change would remove coke from the process, and instead Cleveland-Cliffs would use natural gas, hydrogen or a mix of the two. Running on natural gas alone would slash carbon emissions by 50%. But if it ran on justCleveland-Cliffs’ earlier announcement said this pivot would keep 2,500 jobs at Middletown Works, and the plant would continue to produce 3 million tons of steel per year at an annual savings of $450 million.

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