U.S. Steel and carbon capture technology provider CarbonFree announced a new agreement aimed at launching a new project to capture up to 50,000 metric tons of carbon dioxide per year at U. S. Steel’s integrated steel mill in Gary, Indiana.

According to CarbonFree, the project will be the first commercial-scale carbon capture utilization plant at a steel plant in North America.

Founded in 2016, Texas-based CarbonFree develops technologies aimed at decarbonizing of hard-to-abate industries and global supply chains. The company’s SkyCycle technology captures carbon dioxide produced from industrial plants and mineralizes the emissions to create calcium carbonate, which is used in the production of paper, plastics, personal care products, paint, and building products.

Martin Keighley, CEO of CarbonFree, said:

“U. S. Steel is setting a precedent for how manufacturers can and must proactively manage their carbon emissions, and CarbonFree is honored to play a role in this legacy. At CarbonFree, we are pioneering profitable carbon capture utilization through disruptive specialty chemical manufacturing using waste carbon dioxide as a primary feedstock.”

Under the new agreement, construction of a new SkyCycle plant at the U. S. Steel Gary Works facility is expected to being as early as this summer, with entry into operations anticipated in 2026. The agreement has a term of 20 years following the plant’s in-service date. CarbonFree will also use slag produced by the blast furnace operation as part of the calcium carbonate production process.

Steelmaking is one of the biggest emitters of CO2 globally, and one of the more challenging sectors to abate, with total greenhouse gas emissions (GHG) from the sector accounting for 7% – 9% of direct emissions from the global use of fossil fuels. According to U.S. Steel, the new agreement aligns with its climate goals, which include targets to reduce greenhouse gas emissions intensity by 20% by 2030, and to achieve net zero emissions by 2050.

The companies added that the project marks the first step in exploring the scalability of the technology for future implementation at U.S. Steel.

Scott Buckiso, Senior Vice President & Chief Manufacturing Officer at U. S. Steel, said:

“Innovating to capture carbon at an integrated mill is the latest example of how steel is enabling a more sustainable future. Moreover, U. S. Steel has a history of ‘firsts’ that we’re confidently building on. Using SkyCycle technology for the first project of its kind in North America should benefit the community for generations to come.”