The North American Procurement Process

The Sustainable Steel Buyers Platform’s (SSBP) first procurement round aims to deliver near-zero-emissions steel to North America.

Beyond federal incentives that help bring cleaner production pathways in line with conventional fossil-based pathways, commercial-scale near-zero-emissions iron and steel projects still face large capital investment requirements. Based on financing strategies utilized by recent near-zero-emissions steel developments, we know that obtaining large buyer purchasing agreements and early green premiums are critical in helping suppliers reach Final Investment Decision.

The SSBP is gathering insights into key market challenges from steel producers and other stakeholders in the North American supply chain to inform and refine requests for proposals (RFP). Combined with specifications of buyers’ required volumes, delivery timelines, and emissions performance, the collaborative procurement process aims to:

• Provide buyers with a direct method to stimulate new supply by aggregating sufficient low-emissions demand to help finance a specific iron or steel facility.

• Translate buyer demand into bankable term sheets or offtake contracts to support a producer’s investment decision to develop low-emissions iron and steel production.

• Establish key parameters for executing a low-emissions iron or steel procurement, including emissions thresholds and definitions, feasible volumes, timelines, contracting models, viable technology pathways, and reporting and verification requirements.

SSBP members work collaboratively through RFPs up to the point of price discovery on the green premium. Following this, buyers negotiate individual offtake agreements based on the collectively discovered green premium and other offtake arrangements (e.g., steel specifications, pricing, etc.). By working together, members help accomplish the SSBP’s broader goal of sending producers a powerful demand signal to encourage the deployment of first-of-a-kind, commercial-scale low-emissions iron and steel facilities in North America.

For Prospective Buyers

We need ambitious corporate buyers of steel to join forces. By committing to the Sustainable Steel Buyers Platform, your company will join leading corporations to advance the demand for low-emissions steel.

For Prospective Suppliers

Request for proposals (RFP) issued under the North American SSBP are open to all iron or steel producers and their supply chain partners capable of delivering near-zero emissions steel to North America. In September of 2024, the SSBP Platform launched its first RFP on behalf of the North American buyers group. Responses to the first and all subsequent RFP processes are evaluated based on alignment with Platform membership volume and emissions threshold requirements, competitive green premium, and likelihood to satisfy delivery requirements. Once a proposal is selected, Platform members will have the opportunity to individually negotiate advanced offtake agreements with the qualified producer based on the emissions performance and associated green premium established in the RFP.

The first North American RFP is now closed. Please contact our steel team (sustainablesteel@rmi.org) with any questions.