TT Iron Steel Company Limited has signed a sale and purchase agreement with Christopher Kelshall, the liquidator of ArcelorMittal Point Lisas Ltd. (In Liquidation), to acquire the iron and steel plant in the Point Lisas Industrial Estate, Couva, Trinidad. Completion of the transaction is subject to approval by the Government of Trinidad and Tobago.
The plant is one of the largest steel mills in the Americas, pairing low carbon emission, natural gas-based direct reduced iron technology with electric arc furnaces for steelmaking. Originally constructed in 1980, the plant deployed cutting-edge technology at the time, and was upgraded by continuous investment over the years. Initial refurbishment and restart of the plant is expected to cost US$150-200 million (TT$1-1.4 billion) over the next 24 months with further investment required thereafter.
Currently, 70 percent of the world’s steel is made using traditional coal-based blast furnaces that emit 2.0 to 2.5 tonnes of CO2 per tonne of steel produced. The remaining 30 percent is made using electric arc furnace technology (0.8 to 1.5 tonnes of CO2 per tonne), primarily fed by recycled/scrap steel and/or low carbon emission direct reduced iron, as at Point Lisas. Direct reduced iron is produced from iron ore smelted with natural gas and/or hydrogen, which has lower carbon emissions than coal-based technologies. The plant historically used natural gas, however, TT Iron intends to transition to green hydrogen in the coming years as it becomes commercially available. This will reduce the plant’s carbon intensity to 0.4 tonnes of CO2 per tonne of steel produced. Restarting the iron and steel plant and then transitioning to green hydrogen will put Trinidad and Tobago back on the map as a world leader on the cutting edge of low emission steel production technology.
More than 1,000 jobs will be created during the refurbishment and start-up phase and, when fully operational, the plant will create long-term employment for 500 skilled workers. TT Iron believes that restart of the plant will indirectly create many more jobs, for instance through maintenance and construction services, port services, downstream manufacturing (e.g. reinforcing bar and fencing), demand for green hydrogen and renewable energy, etc.
Founder, President, and Chief Executive Officer Gus Hiller is a veteran of the steel industry and no stranger to the Trinidad and Tobago. He spent six years of his career on the Point Lisas estate at the helm of Nucor and has managed and operated steel plants across United States of America and Canada.
Commenting on the purchase agreement, Hiller said: “We believe there is great potential for the plant to return to the forefront of global steelmaking technology and performance. Our team was drawn to Trinidad and Tobago due to its strategic location, skilled workforce, potential to be a hydrogen leader and an enabling business environment. We are confident we will be able to bring on stream and operate an efficient, cutting-edge steel mill which we expect and hope will start production within the next 12 to 18 months; certainly, no later than December 2024. The restart of this plant will create a long-term sustainable industry that generates secure employment and wealth for the citizens of Trinidad and Tobago for generations to come.”
In addition to providing additional revenue, significant foreign exchange to the treasury, and increased employment (TT Iron will utilise more labour per molecule of natural gas/hydrogen on the island), Chairman of TT Iron Joel “Monty” Pemberton said: “The restart of the local steel industry continues the vision of the Trinbagonian pioneers who conceived it, and we are enhancing this vision with the full use of green hydrogen in the shortest possible time frame; this is the fuel of the future. TT Iron is passionate about the development of the downstream manufacturing sector of higher-value iron and steel products in Trinidad and Tobago, this will further increase employment and wealth creation in the country. Our ESG principles are anchored in producing lower-carbon products, the promotion of entrepreneurial activity in Trinidad and Tobago through the development of the downstream manufacturing sector, and establishing an apprenticeship programme for youth development, thereby creating sustainable employment for generations in the clean energy industry”.
Commenting on TT Iron’s acquisition of the steel plant, Christopher Kelshall said: “I am thrilled to see this asset being acquired by a company focused on the development of Trinidad and Tobago, especially with the future use of green hydrogen. The investment by experienced industry veterans will see Trinidad and Tobago continue to be a credible player in the global steel industry. Further, this investment represents a significant step to continue to diversify the downstream energy industry in Trinidad and Tobago.”
TT Iron was represented by the law firm Dentons. Attorney Shalini R. Campbell, Managing Partner - Trinidad and Tobago, led the transaction and was supported by Rachel Welch-Phillips, Partner - Corporate Commercial | Head of ESG & Sustainable Finance. Both are Directors on the Board of TTIS along with Chairman Pemberton, underscoring the company’s commitment to sustainable development and good environmental and social governance.