Boston Metal, a startup developing technology to cut greenhouse gas emissions during steel production, has raised $120 million in its Series C funding round led by steel and mining company ArcelorMittal. The round also saw participation from Microsoft’s Climate Innovation Fund and SiteGround Capital.
Green steel and high-value metals like tin and niobium will soon be produced using the patented Molten Oxide Electrolysis (MOE) method developed by Boston Metal, which is being commercialized. The company’s pilot facility outside of Boston will be able to produce more green steel thanks to the Series C funds, which will also help with the first green steel plant’s site selection and conceptual design.
Founded in 2012, Boston metal has raised around $191 million in funding to date. The fresh funding will help Boston Metal do Brasil, the company’s Brazilian subsidiary, build and operate a manufacturing facility for high-value metals. It plans to hit the market with its technology by 2026.
“Our technology is designed to decarbonize steel production at scale. We have an experienced team, strong financial backing, and the innovative technology required to disrupt the industry. ArcelorMittal’s support further reinforces our capacity to lead the green steel revolution,” said Tadeu Carneiro, chairman and CEO of Boston Metal.
Boston Metal Aims to provide greener steel-producing solutions
With about 2 billion tonnes produced annually, steel is one of the most significant elements in our society. However, the sector depends on a production process that emits nearly 10 percent of the world’s carbon emissions.
The steel industry has committed to achieving net zero by 2050 in response to the demand for net zero steel solutions from major automotive, building, and technology users. Boston Metal is putting a zero-emissions technology into production to revolutionize the steel industry at the billion-ton scale at competitive manufacturing costs.
Through an energy-efficient, one-step process, the company’s MOE platform converts all iron ore grades into steel using renewable electricity. There is no need for process water, dangerous chemicals, or precious-metal catalysts with the MOE technology because it does not release carbon dioxide or any other toxic byproducts.
MOE carefully processes complex, low-concentration materials currently regarded as garbage to recover valuable metals. By using this organic waste product of metal manufacturing to generate new sources of income, miners can lessen the financial and environmental risks associated with slag.
“In Boston Metal, we are investing in a team that has made impressive progress over a relatively short period, developing a technology that has exciting potential to revolutionize steelmaking,” said Aditya Mittal, CEO of ArcelorMittal.