Amazon and Johnson Controls Join Major Corporations in Launching Tender to Accelerate Deployment of Near-Zero Emissions Steel
The Sustainable Steel Buyers Platform welcomes new members and invites producers to submit bids for the delivery of near-zero emissions iron and steel products by 2028.
New York, NY- [September 24, 2024]
The Sustainable Steel Buyers Platform (SSBP), a coalition of leading corporations working to advance the purchase of inaugural volumes of near-zero emissions steel in North America today released a Request for Proposal (RFP). The platform is convened by clean energy nonprofit RMI (founded as Rocky Mountain Institute) and is seeking bids to meet the members’ demand for at least 1 million tons per year of near-zero emissions steel by 2028, resulting in an annual carbon emissions reduction of roughly 1.5 million metric tons.
The Platform’s first RFP welcomes Amazon and Johnson Controls as the latest corporations to signal market demand for lower emissions steel; they join existing members Dvele, Invenergy, Microsoft, Nextracker, and Trammell Crow Company. Securing offtake at this scale is critical to stimulating producer investment in more sustainable iron and steelmaking technologies and demonstrating the commercial viability of near-zero emissions iron and steel production.
“We are excited to partner with the Sustainable Steel Buyers Platform to advance lower-emissions steel solutions,” said Chris Atkins, Director of Worldwide Operations Sustainability at Amazon. “We’re already reducing steel-related carbon emissions across our supply chain and investing in early-stage companies developing innovative solutions to steel decarbonization, which will help Amazon meet our commitment to reach net zero carbon emissions by 2040.”
“Green steel is essential for the reduction of greenhouse gas emissions and the Sustainable Steel Buyers Platform creates new opportunities to procure it through innovative partnerships. Steel has a significant impact on embodied carbon, and growing the Platform is pivotal for the clean energy transition and meeting customer demand for low-carbon products,” said Renae Kezar, Vice President, Corporate Sustainability at Johnson Controls.
The Platform was launched in September 2023 with the goal of aggregating climate committed buyers towards offtakes which accelerate the business case for near-zero emissions iron and steel. The Platform is seeking responses from iron and steel producers to understand the remaining green premium. After proposals are evaluated, Platform members will have the opportunity to individually negotiate advanced offtake agreements with the selected producer.
The launch of the RFP represents a critical milestone for the buyer’s platform. The steel sector is currently responsible for over 11 percent of global greenhouse gas emissions, stemming from its current production methods that rely on coal or unabated natural gas. Near-zero emissions iron and steel production technology is available today, and by supporting its deployment through offtake, the sector can dramatically reduce the carbon intensity of its final products and slash supply chain emissions.
The SSBP is seeking bids that meet the following criteria:
- New or retrofit projects with commercial-scale production capacity, capable of delivery into the U.S. by 2028.
- Projects that could meet the near-zero emissions threshold at the iron and/or crude steel product level, in line with IEA, FMC, and ResponsibleSteel definition of near-zero emissions (<0.4t CO2eq/ t crude or <0.35t CO2eq/ t iron).
- Provide transparent lifecycle emissions to validate emission claims. Emissions verification will also be leveraged in a future in-sector book-and-claim certification scheme, which will enable companies to purchase highly credible emissions attributes.
“Building on the ambitious climate pledges of its members, the Sustainable Steel Buyers Platform is providing an avenue to accelerate commercialization of new clean technologies for a thriving, sustainable steel industry in the US,” said Thomas Koch Blank, Managing Director of RMI’s Climate-Aligned Industries Program. “The Platform is prioritizing collaborative procurement to help turn corporate climate commitments into action.”
To join or submit a response to the Platform please visit the SSBP webpage.
Media Inquiries please contact:
Rachel Sarah, Media Relations, RMI. Cell: +1 510.928.6122, E: rsarah@rmi.org
Amazon, amazon-pr@amazon.com
Danielle Canzanella, Johnson Controls, danielle.canzanella@jci.com
About RMI
RMI is an independent nonprofit founded in 1982 that transforms global energy systems through market-driven solutions to align with a 1.5°C future and secure a clean, prosperous, zero-carbon future for all. We work in the world’s most critical geographies and engage businesses, policymakers, communities, and NGOs to identify and scale energy system interventions that will cut climate pollution at least 50 percent by 2030. RMI has offices in Basalt and Boulder, Colorado; New York City; Oakland, California; Washington, D.C.; Abuja, Nigeria; and Beijing. More information on RMI can be found at www.rmi.org or follow us on LinkedIn @RMI.