This grant is the only one given in Indiana and was one of only nine projects across the country selected to receive funds for an industrial technology project.

Project location and background:

*ArcelorMittal's Indiana Harbor facility is the largest steel manufacturing facility in the U.S. Employing nearly 5,900 people, the facility is strategically located on 3,100 acres in East Chicago, Indiana, on the southern shore of Lake Michigan, about 20 miles southeast of Chicago, and is capable of producing over 10 million tons of steel annually.

*Indiana Harbor is the largest steel plant in the US. The Number Seven Blast Furnace is the largest blast furnace in North America. It produces 12,000 tons of hot metal per day or 4M short tons per year of iron. The blast furnace was first built in 1980 and recently had major renovations in 2003.

Project summary:

*The project will install an efficient recovery boiler to use the waste blast furnace gas generated during iron-making operations to produce electricity and steam on-site. Currently 46 billion cubic feet of blast furnace gas is flared annually instead of being reused to power other operations. The project will save an estimated 3.66 trillion Btu annually from the waste gas. This is the equivalent to the amount of electricity needed to power 30,000 households for a year, or the same reduction of removing 62,000 cars from the road.

*The total project will take 30 months with the system startup no later than March 2012. A team is in place and a schedule is in place. The company will hire an engineering company in to do the detailed engineering work.

*The project will create several hundred jobs during the next two years and protect and preserve thousands of jobs in the region.

*The project will help utilize a vast fuel source which is now wasted and reduce emissions from the facility. It also will help lower energy costs and per ton production costs by an amount that is large enough to positively affect the plant's competitiveness.

Requirements for the DOE grant - three criteria:

*The ability to preserve and create domestic jobs.

*A shovel ready project, with a showing of our ability to do the project.

*Measure the amount of energy we are saving.

Quote from Senator Lugar:

“This Department of Energy award is a visible recognition that ArcelorMittal is focused on making key steps towards energy efficiency,” said Lugar. “I congratulate ArcelorMittal on these steps to improve efficiency, energy usage and the environment.”

Quote from Congressman Visclosky:

“This Recovery Act grant marks a commitment to Northwest Indiana’s steelworkers,” said Congressman Pete Visclosky (D-Ind.). “The project will create jobs now, greatly increase energy efficiency in the steelmaking process, and help ensure the competitiveness and viability of Northwest Indiana’s steelworkers for years to come. I am proud to see the Recovery Act advance this job-creating effort with long-term energy and economic benefits for the region, and commend ArcelorMittal and the Department of Energy for their commitment to Northwest Indiana.”

Quote from Mike Rippey, CEO and President, ArcelorMittal USA:

"ArcelorMittal is honored to be one of only nine companies selected by the Department of Energy to receive funding for energy efficiency projects and our grant will support a vital project within the Indiana Harbor facility," said Michael Rippey, President and CEO, ArcelorMittal USA. "The energy saved from the Blast Furnace Gas Flare Capture project at our Number 7 Blast Furnace will be the equivalent to the amount of electricity needed to power 30,000 households for a year. In addition, funding for this critical project will ensure the sustainability of steelmaking in Northwest Indiana for years to come."

Source: ArcelorMittal

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Press Release

WASHINGTON, DC- Energy Secretary Steven Chu announced today that the Department of Energy is awarding more than $155 million in funding under the American Recovery and Reinvestment Act for 41 industrial energy efficiency projects across the country. These awards include funding for industrial combined heat and power systems, district energy systems for industrial facilities, and grants to support technical and financial assistance to local industry. The industrial sector uses more than 30 percent of U.S. energy and is responsible for nearly 30 percent of U.S. carbon emissions.

"To remain globally competitive, American industry needs to be energy efficient. The funding for industrial energy efficiency technologies announced today will support a robust American industrial sector and help to usher in a clean energy economy," said Secretary Chu. "Many companies already realize that improving efficiency saves money while helping the environment. These projects will make energy efficiency technologies more widely available, cutting energy use and reducing carbon pollution across the country."

Nine projects announced today will promote the use of combined heat and power, district energy systems, waste energy recovery systems, and energy efficiency initiatives in hospitals, utilities, and industrial sites. Combined Heat and Power and District Energy Systems generate both the heat and power needed for industrial processes on-site, instead of using electricity from the grid, and can be nearly twice as efficient as conventional heat and power production. These 9 awards - totaling approximately $150 million - will be leveraged with $634 million in private industry cost share for a total project value of up to $785 million. These industrial efficiency projects will result in almost 14 trillion Btu in estimated energy savings, which is equivalent to over 112 million gallons of gasoline per year.

The remaining 32 awards will provide local technical support for the industrial sector through university-based Industrial Assessment Centers, state agencies, regional partnerships, and a national technical assistance provider. This funding will enable DOE's Industrial Technologies Program to provide technical and financial support for local businesses and manufacturing facilities to save energy and reduce their energy costs, obtain financing to realize significant gains in efficiency and productivity, and save and create manufacturing and industrial sector jobs across the country.

These 32 projects are an extension of DOE's successful Save Energy Now initiative, which provides plant energy assessments and technical assistance to energy intensive industrial facilities. Since the program's inception in 2006, more than 2,300 assessments have been completed. Over 1,500 industrial facilities implemented the identified energy measures, which have saved $218 million, 35 trillion Btu and 2.3 million metric tons of carbon dioxide each year.

The projects announced today are selections for financial award. The final details for each project award are subject to final contract negotiations between DOE and the grantee.

Today's awards include:

Industrial Technologies ($149.3 million total)

* Texas Medical Center Central Heating and Cooling Services Company

* Seattle Steam Company

* Rhode Island LFG Genco, LLC

* Air Products and Chemicals, Inc.

* Ridgewood Renewable Power, LLC

* ArcelorMittal USA

* Verso Paper Corporation

* The Dow Chemical Company

* Clean Tech Partners

Industrial Assessment Centers ($1.87 million total)

* Bradley University

* Georgia Institute of Technology

* Lehigh University

* Mississippi State University

* North Carolina State University

* Oklahoma State University

* San Diego State

* Tennessee Technological University

* Texas A&M University

* University of Alabama

* University of Dayton

* University of Delaware

* University of Louisiana at Lafayette

* University of Michigan

* West Virginia University

State Agencies ($3.84 million total, approximately $350,000 awarded to each state)

* Alabama Department of Economic and Community Affairs

* Idaho Office of Energy Resources

* Kentucky Department for Energy Development and Independence

* Louisiana State Energy

* Maryland Energy Administration

* Minnesota Department of Commerce

* Mississippi Development Authority-Energy Division

* New Jersey Industrial Energy Program

* Ohio Energy Office, Ohio Department of Development

* Pennsylvania Department of Environmental Protection

* Wisconsin's Office of Energy Independence

Regional Partnerships ($2.5 million total, $500,000 awarded per region)

* Energy Resources Division of the Georgia Environmental Facilities Authority along with Georgia, Tennessee, and North Carolina

* Massachusetts Department of Energy Resources and the Center for Energy Efficiency and Renewable Energy at the University of Massachusetts (CEERE)

* Illinois State Energy Office

* Washington Department of Community Trade and Economic Development

* West Virginia Department of Energy

National Technical Assistance Provider ($1.4 million)

* Oak Ridge Partnership for Industrial Energy Efficiency

Source: The White House