Metals technology company Boston Metals announced today that it has raised $120 million, with proceeds aimed at scaling up the production of green steel at its pilot plant, and supporting the construction of a commercial plant for high value metals produced using its zero emissions technology.

The funding round was led by multinational steel company, ArcelorMittal, through its Xcarb innovation fund, which invests in companies developing breakthrough technologies that will accelerate the steel industry’s transition to carbon neutral steelmaking.

Demand for fossil-free steel is expected to increase significantly, as manufacturers globally aim to decarbonize their supply chains. Steelmaking is one of the biggest emitters of CO2 globally, with total greenhouse gas emissions (GHG) from the sector accounting for 7% – 9% of direct emissions from the global use of fossil fuels. 

Tadeu Carneiro, Chairman and CEO of Boston Metal, said:

“Our technology is designed to decarbonize steel production at scale. We believe we have the 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.”

Boston Metals is commercializing Molten Oxide Electrolysis (MOE), an electricity-powered metals production platform that can be used for green steel, as well as for high-value metals such as tin and niobium. The one-step technology uses renewable electricity to convert all iron ore grades into steel through an energy-efficient process, and selectively extracts valuable metals from complex, low-concentration materials that are currently considered waste, resulting in a process that produces zero CO2 emissions, has no need for process water, hazardous chemicals, or precious-metal catalysts, and is cost competitive compared to traditional production methods.

The company said that it will use proceeds from the financing to expand the production of green steel at the company’s pilot facility outside Boston, support the site selection and preliminary design of its first green steel plant, and support the construction of its first commercial plant for high-value metals production in Brazil.

Aditya Mittal, CEO, ArcelorMittal, said:

“In Boston Metal, we are investing in a team that has made impressive progress over a relatively short period of time, developing a technology that has exciting potential to revolutionize steelmaking. In our extensive discussions with them, we have been impressed by the passion and vision they have to contribute to the decarbonization of steelmaking.”

Additional new investors in the financing included Microsoft’s Climate Innovation Fund and SiteGround Capital.

Brandon Middaugh, director, Microsoft Climate Innovation Fund, said:

“Microsoft’s Climate Innovation Fund was created to accelerate technology development and deployment in areas that will have the most meaningful impact on climate. The technology Boston Metal is developing has the potential to deliver affordable green steel at scale, helping to drive cross-industry decarbonization, which is increasingly critical for companies with carbon reduction targets, such as Microsoft.”

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