ArcelorMittal (NYSE: MT), through its subsidiary ArcelorMittal Energy Ostrava, has signed a contract with Finland's Valmet to install a fluidized bed boiler worth $47 million, which will replace four coal-fired boilers.
The new boiler will help to reduce emissions of sulphur dioxide, nitrogen oxides and dust. It is a part of the overall modernization of Ostrava's power plant. Setting up the new boiler will help the company to reduce the adverse environmental impact and also comply with European emission limits, before they are implemented.
The fluidized bed boiler is designed in such a fashion that it burns coal more efficiently than the current coal fired boilers and has an efficiency of more than 92%, while producing very low emissions. The boiler has facilities for desulphurization and reduction of nitrogen oxides emissions. At the same time, the fabric filter will ensure a perfect de-dusting of flue gases.
The boilers at the power plant also consume the gas generated during hot metal production, leading to a considerable reduction in environmental impact vis-a-vis other coal-powered power plants or heating plants. Thus, the power plant of ArcelorMittal Ostrava can substitute up to a third of its coal consumption.
The boiler represents the largest environmental and modernization investment project for ArcelorMittal since the 1990s and will be commissioned in the middle of 2016. Despite unfavorable economic conditions, setting up the boiler will ensure the company's competitiveness in the market.
ArcelorMittal currently holds a Zacks Rank #3 (Hold).
Other companies in the steel and related industries with a favorable Zacks Rank include NN Inc. (NASDAQ: NNBR), Universal Stainless & Alloy Products Inc. (NASDAQ: USAP) and ThyssenKrupp AG (TYEKF). While NN and Universal Stainless & Alloy Products hold a Zacks Rank #1 (Strong Buy), ThyssenKrupp carries a Zacks Rank # 2 (Buy).
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