Ferrexpo PLC has released the findings of its Life Cycle Assessment (LCA) in collaboration with environmental consultants Ricardo Plc, which evaluated the environmental benefits of using its direct reduction (DR) pellets in steel production. The assessment revealed that using Ferrexpo's high-grade premium DR pellets in the Direct Reduced Iron - Electric Arc Furnace (DRI-EAF) steelmaking process can lead to a 37% reduction in embodied carbon emissions compared to traditional steel production methods. This means that when a steel manufacturer uses Ferrexpo's DR pellets in an electric arc furnace, 37% less carbon is emitted compared to traditional steel production methods.
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 assessment used historical activity data from 2021 and was carried out using SimaPro software, complying with ISO 14040 and ISO 14044 standards. The study was independently critically reviewed and found to be in accordance with these standards.
Ferrexpo is using the LCA to explore how to further reduce its impacts across a range of environmental issues including water and waste. The company 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. Yaroslavna Blonska, Acting Group Chief Marketing Officer, expressed that the findings of the LCA are significant, stating, "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."
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. 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.