Decarbonizing American industry & creating American jobs! (see: https://lnkd.in/gQ8Mx7cM) Today, LPO announced a conditional commitment for a loan guarantee of up to $182.6 million to International Recycling Group Erie (IRG Erie) to finance the construction of a plastics recycling facility in Erie, Pennsylvania, and an injection system tower at a steel manufacturing facility in northwest Indiana.
The new recycling facility will mechanically recycle PET, HDPE, and polypropylene polymers, and produce about 20,000 tons per year of CleanRed™ from residual plastic output. CleanRed™ can reduce greenhouse gas (GHG) emissions in the steelmaking process by replacing a portion of coking coal used in blast furnaces or anthracite coal used in electric arc furnaces.
The CleanRed™ produced by the facility will be used by an integrated steel manufacturer in its site in northwest Indiana. IRG Erie will be the first company in the U.S. to produce and sell a plastic-waste-based iron reducing agent to a domestic steel manufacturer, helping to solidify America’s position as the global leader in low-carbon iron and steel products.
The U.S. steel production industry accounts for 7% of national GHG emissions. Assuming a 14% replacement rate of coking coal used in blast furnaces, using CleanRed™ will result in a 24% reduction in GHG emissions from this process—helping move the steel sector toward net-zero emissions.
Today’s announcement supports President Biden’s Investing in America agenda by creating an estimated 334 construction jobs, including 304 jobs at the Erie plant site and 30 jobs to build the injection system at the steelmaker’s site in Indiana. The project will also create 221 operations jobs in Erie and northwest Indiana.
As with all conditional commitments that LPO offers, it's important to note that while this announcement demonstrates an intent to finance the project, the expected U.S. Department of Energy (DOE) financing will only be issued pending the satisfaction of certain conditions—including final legal, contractual, technical, and financial requirements—that the conditional commitment specifies.
LEARN MORE:
• What is a Conditional Commitment & How is it Different from a Loan or Loan Guarantee? https://lnkd.in/gkhfhYHZ
• President Biden's "Investing in America" Agenda: WhiteHouse.gov/Invest
• Read about other LPO project announcements: https://lnkd.in/g23s_Uk4
• How LPO's Title 17 Clean Energy Financing Program is financing innovative energy projects across sectors: https://lnkd.in/gN2jDVbw
• See how LPO can help support renewable fuels & chemical projects: https://lnkd.in/gBv4ja7G
• Info about DOE's Clean Fuels & Products Earthshot: https://lnkd.in/eUaZijby
