ArcelorMittal Launches new Clean Technology Venture Capital Fund and new Carbon Fund
ArcelorMittal’s position as a leader in the steel industry brings unique responsibilities, especially when it comes to our management of social and environmental issues. We take this role seriously as demonstrated in our designation of sustainability as a core value for the organization.
Supporting that commitment to sustainability, ArcelorMittal is involved in several climate change initiatives. Our most recent outreach effort is the launch of a venture capital fund focused on companies developing new technologies to reduce global CO2 emissions such as solar power or carbon sequestration. Aligning with such companies makes good business sense for ArcelorMittal because it helps accelerate the pace of bringing new technologies to the marketplace which will enable us to stay at the forefront of the steel industry.
“This fund, which is managed out of the US, is focused on investments that have strategic importance to the steel industry and our key customers,” said Lou Schorsch, CEO of Flat Carbon Americas. “The objective of the fund is to support commercialization of clean energy, which will reduce greenhouse gas emissions.”
This fund will initially focus on US companies, but may eventually invest overseas. To accelerate the pace of its Fund investments, ArcelorMittal has teamed up with three leading US venture capital firms – Bessemer Venture Partners, Khosla Ventures, and Kleiner Perkins Caufield and Byers. These three firms combined have over 100 years of experience helping new companies commercialize their technology and have backed such famous companies as Google, Yahoo, Sun, International Paper, and Staples.
“The potential to partner with such firms further enables the steel industry to make significant improvements in innovation, research, and development – steps crucial to making CO2 reductions possible and economically viable,” said Jason Schmitt, Fund Manager for the Clean Technology Fund.
The Clean Technology Fund has made its first investment of US20 million in Miasolé, a California-based developer of solar panel technology. Miasolé’s thin-film design, breakthrough production process, and use of flexible stainless steel substrate allows it to be a highly efficient provider of solar energy at prices competitive with non-renewable energy sources.
“Miasolé’s solar technology is highly complimentary with ArcelorMittal’s existing solar product offerings in Europe,” said Schmitt.
Another sustainable initiative launched recently is the creation of a new Carbon Fund. This move will allow ArcelorMittal to strategically engage in the carbon market and promote climate friendly solutions that are relevant for the steel industry today and tomorrow. The Carbon Fund, which has an initial investment commitment of US $150 million, is looking at investment opportunities in renewable energy, energy efficiency, and greenhouse gas reducing technologies. ArcelorMittal will use the carbon credits received from these investment opportunities to partially fulfill its compliance obligations under the Kyoto Protocol – an agreement adopted in December 1997 by numerous countries committed to reducing greenhouse gases.
“It’s an exciting time for us,” said Schmitt. “ArcelorMittal has committed to building a business based on sustainable practices and in doing so, we are certainly moving in a direction that can transform tomorrow.”