PITTSBURGH & SAN ANTONIO - United States Steel Corporation (NYSE: NYSE:X), commonly known as U.S. Steel, has entered a definitive agreement with CarbonFree, a carbon capture technology firm, to implement a carbon capture and mineralization project at U.S. Steel’s Gary Works facility in Indiana. The initiative marks the first commercial-scale application of such technology at a North American steel plant.
The project, utilizing CarbonFree's SkyCycle™ technology, aims to capture and mineralize up to 50,000 metric tons of carbon dioxide annually from the blast furnaces at the Gary Works plant. The captured carbon will be converted into specialty-grade, carbon-neutral calcium carbonate, which is a key ingredient in products ranging from paper and plastics to personal care and building materials.
This collaboration is part of U.S. Steel's broader environmental strategy, which includes a target to reduce greenhouse gas emissions intensity by 20% by 2030 and to achieve net-zero emissions by 2050. The company sees this as a step forward in meeting increasing customer demand for low-emission products, such as its verdeX™ advanced sustainable steel.
Construction on the SkyCycle plant is set to begin as early as summer 2024, with the facility expected to become operational in 2026. The agreement between U.S. Steel and CarbonFree extends for 20 years from the start of service.
CarbonFree's patented SkyCycle solution is designed to capture carbon emissions from industrial sources before they are released into the atmosphere. The process not only reduces emissions but also produces a valuable byproduct that can aid in decarbonizing global supply chains.
Martin Keighley, CEO of CarbonFree, expressed pride in contributing to U.S. Steel's legacy of environmental stewardship. He highlighted the potential economic and environmental benefits for the city of Gary and the state of Indiana.
Scott Buckiso, Senior Vice President & Chief Manufacturing Officer at U.S. Steel, emphasized the innovative nature of the project and its alignment with the company's history of pioneering developments in the steel industry.
U.S. Steel's Gary Works is a significant employer in the region, with over 4,300 employees. The plant's operations have a substantial economic impact, supporting numerous jobs in related sectors within the local economy.
The information for this article is based on a press release statement.
InvestingPro Insights
As United States Steel Corporation (NYSE: X) embarks on its groundbreaking carbon capture initiative, investors are keeping a close eye on the company's financial health and market performance.
According to InvestingPro data, U.S. Steel boasts a market capitalization of $9.31 billion USD and an attractive P/E ratio of 10.3, indicating that the stock may be reasonably valued in relation to its earnings.
With a commitment to environmental responsibility, U.S. Steel's long-term strategy seems to be resonating with market sentiments, as evidenced by a notable 26.19% price total return over the last six months. Additionally, the company's dedication to shareholders is reflected in its history of dividend payments, maintaining them for an impressive 34 consecutive years.
Investors considering U.S. Steel as part of their portfolio may also find the InvestingPro Tips informative. For instance, management's aggressive share buyback strategy can signal confidence in the company's future prospects. Moreover, the company has been profitable over the last twelve months, which aligns with analysts' predictions that it will remain profitable this year. For those interested in a deeper analysis, there are more InvestingPro Tips available at https://www.investing.com/pro/X. Additionally, use the coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further valuable insights.
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