Under Pressure, Hyundai Steel to Significantly Reduce Emissions, Switch from Gas to Electric Heaters at Proposed Louisiana Plant

More changes needed to bring the plant into line with the law and community expectations

Donaldsonville, La. — In an update made public Monday, Hyundai Steel submitted changes to its air permit application that reveal the company plans to switch nine dirty industrial heaters at its proposed steel plant from gas-fired to electric. The company also said they would install additional pollution controls that will significantly reduce emissions from its original plans, which failed to consider these efficient options at all.

The changes come as the company faces increased pressure from the community and environmental groups, including Sierra Club, to ensure that the plant does not substantially increase the burden of pollution in the area, which is already known as Cancer Alley, and creates family-sustaining jobs for local residents.

Sierra Club estimates the shift from gas-powered to electric heaters will reduce the plant’s greenhouse gas emissions by 22,397 tons per year – roughly equivalent to 5,000 gasoline-powered passenger vehicles for one year. Hyundai’s changes also include using two more selective catalytic reduction control devices that will drastically reduce the plant’s releases of smog-forming nitrogen oxides (NOx) into the surrounding communities by 500 tons per year. The company made other changes that will cut its expected particulate matter pollution in half, amounting to a 240 tons per year reduction, which is a significant step forward for public health.

In a series of comments, submitted in February, April and May, Sierra Club estimated that if Hyundai electrified components of steel finishing operations at the plant, the company could reduce the proposed facility’s greenhouse gas emissions by a total of 39.5% — over 764,000 tons annually — and NOx by 33.38% and volatile organic compounds by 25.2% — while potentially saving $2.7 million per month in operating costs. Green hydrogen would also significantly reduce the facility’s total annual greenhouse gases and health-harming combustion emissions.

In response, Sierra Club Senior Attorney Andrea Issod released the following statement: 

“These changes signal that Hyundai is hearing our calls for them to do better — and that opportunities remain to push the company to step up. While switching to electric heaters is a step in the right direction, and we applaud the significant reduction in smog-forming and particulate emissions, the company’s air permit application still raises red flags that must be fixed before this project can proceed. Hyundai must adopt cleaner technologies to protect local communities and plant workers from harmful pollution. And if they aren’t doing it, LDEQ should make them. Hyundai Steel has an opportunity to do right by the local community by fully electrifying the facility and committing to using green hydrogen instead of adding to the legacy of industrial pollution in Cancer Alley.”

Additional Background: 

Sierra Club’s expert comments demonstrated how Hyundai’s December application failed to consider cleaner alternative technologies that would reduce greenhouse gas emissions, NOx, and PM in violation of the federal Clean Air Act, the Louisiana Public Trust Doctrine, and the company’s own environmental commitments. View detailed exhibits submitted with Sierra Club’s expert comments here: Exhibits 1-17 & Exhibits 18-35.

At the end of May, representatives from the Good Neighbors Louisiana coalition dropped in on Hyundai’s offices in Gonzales to present the company with a list of demands regarding its proposed $5.8 billion steel mill in Donaldsonville, as well as additional comments filed with the Louisiana Department of Environmental Quality (LDEQ) about the company’s failure to establish safeguards on toxic dust from transportation and construction.

About the Sierra Club

The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person’s right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.