The U.S. Department of Energy (DOE) wants to support the Pennsylvania-based International Recycling Group (IRG) in the construction of a mechanical plastics recycling plant that will help to reduce CO2 steel emissions. The DOE has conditionally agreed to guarantee a loan of up to US$182.6 million to Pennsylvania-based International Recycling Group (IRG) that would produce a plastics-based coking coal alternative. In addition to building the plastics recycling plant in Erie, Pennsylvania, IRG intends to build an injection plant in a steelworks in north-west Indiana.
The recycled plastic product, branded CleanRed, can reduce greenhouse gas emissions in the steelmaking process by replacing some of the coking coal used in blast furnaces or anthracite coal used in electric arc furnaces, according to the Energy Department. The product produced at the facility will be used by an integrated (i.e., with a blast furnace) steel manufacturer in its site in northwest Indiana. IRG Erie will be the first company in the United States to produce and sell a plastic waste-based iron reducing agent to a domestic steelmaker, helping to solidify America’s position as the global leader in low-carbon iron and steel products, says the DOE.
The U.S. steel production industry accounts for 7% of national GHG emissions. Reducing coking coal usage in the steelmaking process will significantly lower emissions. Assuming a 14% replacement rate of coking coal used in blast furnaces, using CleanRed will result in a 24% reduction in GHG emissions from this process—helping move the steel sector toward net-zero emissions.
According to the DOE, recycled plastic production uses 50% less energy than traditional plastic production from fossil fuels, and the increased recovery rate of the plastics at this facility will result in further avoided virgin plastics production. Plastic production currently accounts for roughly 2% of total U.S. energy consumption. In total, IRG Erie is expected to avoid up to 555,000 metric tons of CO2e annually as a result of avoided virgin plastics production and emissions reductions in the steel production process. This emissions reduction is equivalent to about 190,000 tons of waste being recycled instead of landfilled each year.
Plastics recycler IRG was founded by former steel executive Mitch Hecht, former CFO of the International Steel Group, which was acquired by ArcelorMittal. The new recycling plant, worth 185 million dollars, is expected to employ 300 people.
Source: DOE/IRG
