American technology startup Electra has raised USD 186 million in investment to scale its electrolysis process for clean iron production, Canary Media reported. The investment round was led by world-renowned investment firms Capricorn Investment Group and Temasek Holdings, alongside major steel and mining players. Support also came from industry leaders including Rio Tinto, Roy Hill, BHP, Nucor and Toyota Tsusho.
The electrolysis technology developed by Electra offers a greener approach to purifying iron ores, powered by electricity instead of coal-fired blast furnaces. This method aims to make steel production more sustainable by avoiding the release of large amounts of carbon dioxide in the iron refining process.
The bulk of the investment will be used for Electra's first demonstration-scale plant. This plant aims to produce 500 tons of high-purity iron annually by 2026. The company plans to commission a larger commercial-scale production facility by 2029. Electra aims to reduce its environmental impact by refining iron ores used in steel production with lower carbon emissions.,
Electra's CEO Sandeep Nijhawan stated that these investments demonstrate the potential of the technology developed by the company to integrate into the global steelmaking value chain. Through collaborations with steel producers such as Nucor, the company aims to gain a significant position in the clean steel production market.
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