Powered by Electricity, Boston Metal’s “Green” Steel Remains Dependent on Fossil Fuels
Updated
Steel production is undergoing a rebellious transformation. Boston Metal, a company based in Massachusetts, has developed a process that it claims is so clean that its emissions could be safely vented near a daycare. Eliminating the need for coal or natural gas in iron refining, the new product produces only oxygen as a byproduct through molten oxide electrolysis. Their method, developed at MIT and now being prepared for wider use, uses electricity instead of coal or gas, creating only oxygen as a byproduct and no carbon dioxide. This switch represents a significant development for those seeking to reduce the use of fossil fuels in steel production, which typically accounts for 7-9 percent of the world’s greenhouse gas emissions.
Unlike traditional steel mills that burn fossil fuels and thus create air pollution, Boston Metal’s process, called molten oxide electrolysis (MOE), is powered by electricity. Iron ore is placed in a special chamber with a liquid that conducts electricity, with the only greenhouse gas emissions coming from the electricity used to power the system. Hmmm. The process heats the iron ore to 1,600°C, and then an electric current is used to separate out impurities. It stands to reason that process requires ample electricity. The pure iron accumulates at the bottom and is drained out, similar to tapping syrup from a tree. The design is quiet, clean, and cool compared to old-school steel mills, thanks to a special corrosion-resistant part developed at MIT.
According to reports, Boston Metal has raised $400 million from major investors, including ArcelorMittal, Saudi Aramco’s venture arm, the World Bank’s International Finance Corp., and major climatetech funds such as Breakthrough Energy Ventures (with funding from Bill Gates) and Microsoft’s Climate Innovation Fund. This money has enabled the company to grow without relying on government support, which is critical for those promoting green energy, as U.S. policies under the Trump administration are leaning toward fossil fuels and cutting funds for green projects. For example, some companies that got funding for clean steel projects are now switching back to coal or gas, but Boston Metal’s outside funding has kept them moving forward.
Initially, to start generating income, Boston Metal is focusing on niobium, a valuable metal used in steel alloys that sells for about $82 per kilogram, much more than steel’s $900 per ton. The company is utilizing its technology to extract niobium from mining waste at a new facility in Brazil, which is expected to begin operations in July 2025 and generate revenue shortly thereafter. This initial project will serve as a steppingstone to Boston Metal’s larger goal of producing steel without using fossil fuels. The company, which intends to license its technology worldwide, plans to build a commercial steel test plant, scheduled for completion in 2028.
But what about the significant amount of electrical energy required to operate Boston Metal’s oxide electrolysis (MOE) process to produce its green product? After all, the process must heat the electrolytic cell to roughly 1,600 degrees C and drive the electrochemical reactions that separate iron oxide into molten iron and oxygen. According to available data, the MOE process consumes approximately 4 megawatt-hours (MWh) per ton of steel produced. This estimate is based on industry analyses and Boston Metal’s own descriptions of the process. For context, this is slightly higher than the energy required for hydrogen-based direct reduced iron (DRI) processes, which use about 3.2 MWh per ton, but lower than traditional coal-based steelmaking, which requires around 5.2 MWh per ton in equivalent energy from coal.
Likewise, the energy consumption can vary depending on factors such as the scale of the operation, the efficiency of the electrodes, and the composition of the electrolyte. For example, Boston Metal has been working to improve the “faradaic efficiency” (the percentage of electrons producing metal) and thermal efficiency (reducing the kilowatt-hours needed per ton of metal) to maximize energy use. At a commercial scale, a single MOE cell with a current of about 600,000 amps could produce up to 10 tons of metal per day, translating to massive energy demands depending on the number of cells deployed.
Again, what is the source of the significant amount of electrical energy needed for this project? It is well known that, despite being promoted as “clean” and “green,” the initial power required to bring the numerous much-hyped alternative energy solutions to fruition more often than not comes from fossil fuels. Not surprisingly, the MOE process is designed to be powered by electricity that, in the controlled world of the deep state, comes from their preferred resources, such as wind, solar, or nuclear energy, to achieve their beloved zero emissions.
Notably, Boston Metal’s economic viability hinges on access to affordable electricity, with estimates suggesting that at $20–$30 per MWh, the electricity cost per ton of steel is around $80–$120, making it competitive with traditional methods, especially in regions with low-cost renewable energy. At higher electricity prices, such as $50 per MWh, costs rise to about $200 per ton, which may require carbon pricing or incentives to remain competitive. Adding to the green energy conundrum, Boston Metal doesn’t specify a single power source for all of its operations since the source depends on the location and energy infrastructure of each facility. Its pilot plant in Woburn, Massachusetts, uses electricity from the local grid, which includes natural gas, which defeats the company’s purpose.
In reality, Boston Metal’s MOE process may not ultimately achieve the company’s goal of using zero fossil fuels unless the world is powered by renewable energy and our great outdoors are replaced with solar panels and our vast farmlands and oceans destroyed by wind farms, which, by the way, are indirectly powered by fossil fuels.
