Liberty Galați announced its commitment to achieve a carbon-neutral footprint by 2030. Can you elaborate on the specific targets you have set for and the strategies you plan to implement to achieve this target?
LIBERTY Galati maintains its current ambition to reduce its Scope 1 and 2 carbon emissions to near zero by 2030. In order to achieve this target, we intend to transition to using hybrid electric arc furnace (EAF) and other advanced technologies. The EAF installation alone should radically reduce our carbon footprint by cutting our direct carbon emissions by around 80%.
There will always be residual carbon emissions associated with steel production, but by 2030 we expect these to be minimal. Our intention is to consider a combination of offsets and emerging technology to deal with the low level of emission associated with electric steel production powered by green energy.
A key component of our plans is therefore our renewable energy strategy, so we have finalized the pre-study for high voltage connection for our EAF and started feasibility studies for further decarbonization projects. We are also implementing a series of energy efficiency programmes within our plants.
We recognise the scale of this ambition and are transparent about the challenges - such as the massive CapEx investment required - as well as the need for support from all stakeholders, including government, financial institutions and energy companies.
How does Liberty Galați integrate circular economy principles into its manufacturing processes? Are there any recent initiatives or projects that highlight this integration?
Steel is an excellent example of the circular economy in action – steel is 100% recyclable, so it can be melted and reused to make new steel in a constant cycle. The green technologies of tomorrow, from wind turbines to green cities, will be built reusing the steel used to make the world of today.
It is why the retention of scrap is so important and why we continue to advocate at EU level that we should start treating steel scrap as a critical raw material. As Galati transitions to using EAF technology, its demand for scrap is likely to more than triple, so we need to ensure that Romanian and European scrap is retained, and that sorting processes are enhanced.
LIBERTY Galati has also adopted a series of measures to protect the environment: recycling to rationalize the consumption of raw materials; reducing the amount of waste produced; as well reducing the amount of CO2 emissions generated.
Liberty operates in a sector known for its significant energy consumption. How is the company working to transition to renewable energy sources, and what milestones have you achieved in this regard?
We are working hard to improve our renewable energy sources, with the first 50MW of our proposed 250MW on-site solar farm programme already in development. This renewable energy capacity will be critical to help generate some of the low carbon power required for our EAFs in the future.
What steps is the company taking to improve water usage and management in its operations? Are there any specific projects aimed at reducing water consumption or improving water recycling?
Our Environmental Management System includes a comprehensive program to monitor and manage our water use, waste, and recycling, alongside maintenance activities designed to reduce the impact of our water consumption. While the challenging market conditions in recent years have led to temporary production pauses, which can cause an increase in water usage when operations resume, we remain committed to these initiatives and are confident they will yield positive results as market stability returns.
Employee engagement is key to a successful sustainability program. How does Liberty Galați involve its employees in sustainability efforts, and what training or incentives are provided to encourage sustainable practices?
We put a lot of importance on our employee training programs and we have a dedicated GREENSTEEL Academy which focuses on preparing our employees for the transition to a greener future. Inside the academy, we have three development programs called Discover, Transformer and Maestro, dedicated to managers, successors for key positions and heads of team leaders. The programs last between 6 and 12 months and develop the behavioural and leadership competencies needed to achieve our GREENSTEEL goals. We combine theory with practical activities, simulations, case study discussions, workshops and coaching sessions.
Furthermore, we have developed a course DISCOVER GREENSTEEL for students, created and delivered by LIBERY Galati specialists. The program is accredited at the University of Dunarea de Jos Galati. Interested students can register and participate in the program to learn more about topics such as climate change, green steel production technologies - EAF, DRI, Industry 4.0, Hydrogen and behavioural competences.
What budget will the company invest in ESG in 2024?
We do not see ESG as a standalone activity, but rather a key strategic pillar of our business. Therefore, activities associated with environmental management, social engagement, and continued maturity of our governance structures are incorporated within our ‘standard' business planning processes and budgets.
We will continue to invest in our GREENSTEEL transformation programme, from feasibility studies for the new technologies to the development of our solar park. We also continue to invest in our employees and local communities, with our social responsibility programs carried out in partnership with the GFG Foundation which aims to educate the younger generation and prepare them for a future of innovation and sustainability.
Although the industry has faced many challenges over the past two years, we have continued to invest in our key youth programmes: the Robotics Club and the Dual Learning Programme. Now in its third edition this year, the Dual Learning Programme educates young people in STEM (Science, Mathematics, Technology and Engineering) fields and is developed in collaboration with the "Paul Dimo" High School and the UK accredited organization Rewise Learning.
Our Robotics Club took place in 2023 and 2024 and offered employees' children interactive classes and the opportunity to build and program robots. For the third year in a row, we also partnered with the Excellence in Education Gala, which recognizes the performance of exceptional students in Galati. As part of our Galati community engagement, we continued to be the Official Partner of Otelul football team last season and supported the performance of one of the best Romanian teams playing in the Superleague.
