DECD0000086

The Iron Electric Induction Conversion Project, led by United States Pipe and Foundry Company (U.S. Pipe), aims to replace a coke-fired furnace with electric induction melting furnaces, which would eliminate the need for natural gas and coke (derived from coal) in the iron melting process and result in an estimated 73% reduction in carbon intensity at the Alabama Works Ductile Iron Pipe Production Facility in Bessemer, Alabama.

This project is expected to reduce the cost of operations, improve manufacturing capacity, and enhance overall melting process and reliability—demonstrating the viability of electrifying a core process for iron and steel manufacturing.

By replacing the burning of coke with electric induction, this project would substantially improve air quality including reductions in particulate matter, nitrogen oxides, and sulfur oxides for nearby communities.

The project anticipates generating more than 220 construction jobs, upskilling 36 employees to higher-skilled and higher-paying roles, and providing leadership development opportunities for many others.

Additionally, U.S. Pipe plans to sponsor two to three STEM scholarships and an internship program—that includes shadowing U.S. Pipe engineers—for low-income students in the Bessemer area to expose students to clean energy manufacturing.

U.S. Pipe has collective bargaining agreements with United Steelworkers (USW), International Association of Machinists and Aerospace Workers (IAM), and the International Brotherhood of Electrical Workers (IBEW) at Bessemer.

United States Pipe And Foundry Company

THE PARTIES SHARE A MUTUAL GOAL OF PROJECT SUCCESS AND WILL COOPERATE AND COLLABORATE CLOSELY TO ACHIEVE THE SHARED VISION, PROJECT OBJECTIVES, AND RESPONSIBILITIES STATED BELOW: 1. AT THE ALABAMA WORKS FACILITY, INSTALL AND COMMENCE COMMERCIAL OPERATIONS OF FOUR 40-TON 24 MW ELECTRIC INDUCTION FURNACES TO PRODUCE DIP WITHOUT FOUNDRY COKE. 2. LEAD TO MORE THAN 95% REDUCTIONS IN DIRECT SCOPE 1 GREENHOUSE GAS (GHG) EMISSIONS ASSOCIATED WITH PROCESS MELTING (I.E., PROCESS P1) AND AT LEAST 70% REDUCTIONS IN OVERALL CARBON INTENSITY. 3. DEMONSTRATE PROJECTED COST SAVINGS OF AT LEAST $131 PER NET GOOD TON BY THE YEAR 2030. 4. DEMONSTRATE REDUCTIONS IN PRIMARY CRITERIA AIR POLLUTANT (CAP) AND OTHER EMBODIED EMISSIONS ACHIEVED THROUGH THE IMPLEMENTATION OF ELECTRIC INDUCTION MELTING TECHNOLOGY FOR DIP PRODUCTION USING THE EXISTING FOUNDRY COKE MELTING PROCESS AS THE BASELINE FOR COMPARISON. 5. IMPLEMENT A ROBUST COMMUNITY AND LABOR ENGAGEMENT FRAMEWORK BY INVESTING IN THE ENHANCEMENT OF WORKER SAFETY AND THE UP-SKILLING OF LABOR IN THE DISADVANTAGED COMMUNITY OF BESSEMER, AL BY WORKING WITH LOCAL LABOR UNIONS, HIGHER EDUCATION INSTITUTIONS AND WORKFORCE DEVELOPMENT PARTNERS TO PROMOTE HIGH-SKILLED, HIGH-PAYING JOBS IN THE IN THE STEM AND CLEAN ENERGY INDUSTRY WITHIN THE AREA.

81.255 - Clean Energy Demonstrations

Department of Energy (DOE)

Multi-State United States

Multi-State

Industrial Decarbonization and Emissions Reduction Demonstration-to-Deployment Funding Opportunity Announcement (DE-FOA-0002936)

Amendment Since initial award the total obligations have increased 2265% from $3,192,701 to $75,500,000.