Project is among awardees of $6B in DOE investment through IRA and Bipartisan Infrastructure Law
Contact: Ada Recinos, Deputy Press Secretary, ada.recinos@sierraclub.org (Pacific Time)
Butler, PA – Cleveland-Cliffs and the Department of Energy Industrial Demonstrations Program (IDP), recently announced that the company’s Butler Works facility – the only American manufacturer of grain-oriented electrical steel, which is a critical material for the clean energy transition – has committed to delivering public health benefits, pollution reduction, and that the company will negotiate a community benefits agreement for the project. Through the program it will receive up to $75 million from the DOE to electrify two of its gas-fired reheat furnaces, transitioning to advanced electric induction reheat furnaces, which will greatly reduce onsite greenhouse gas emissions and harmful local air pollution. As a recipient of public funds, the Sierra Club and its Pennsylvania chapter look forward to working with Cleveland-Cliffs and local stakeholders to see through this good faith effort to provide meaningful investments to the community.
“Sierra Club is excited to see DOE move forward promising projects from the Industrial Demonstrations Program. With funding made possible by the Biden-Harris administration’s landmark climate law, Cleveland-Cliffs’s Butler Works and dozens of other manufacturing facilities nationwide are investing in slashing greenhouse gas emissions, providing good paying union jobs, and supporting thriving communities. We hope that other awardees follow the example of Cleveland-Cliffs to commit to pursuing negotiated agreements with community stakeholders to ensure that the promise of public investments deliver on real public benefits,” shared Industrial Transformation Deputy Director Iliana Paul.
“We commend Cleveland-Cliffs for its intention to produce cleaner steel by adopting new manufacturing technologies and move forward in a transparent manner on this project and engage in meaningful dialogue with the people of Butler. The Sierra Club will continue working with frontline community members to make sure diverse voices are represented throughout the project’s implementation. It is vital that community members and stakeholders participate equally in shaping the future of Butler’s clean energy transition,” said Sierra Club Pennsylvania Chapter Director Qiyam Ansari.
The electrification project will create at least 100 new permanent jobs at Butler Works, which currently employs 1,100 workers represented by the United Auto Workers (UAW Local 3303). Additionally, the project will support 160 jobs at Cleveland-Cliffs’ finishing facility in Ohio, bolstering the regional economy. Cleveland-Cliffs is also committing to local grid upgrades to ensure the facility can efficiently utilize the necessary clean power.
As part of the Department of Energy’s IDP, Cleveland-Cliffs is required to develop and implement a Community Benefits Plan, ensuring that the project delivers tangible benefits to the residents and stakeholders around the Butler Works facility. DOE has now released the company’s commitments on this front. Highlights include:
- Community Engagement: Working with local stakeholders to negotiate a Community Benefits Agreement or alternative community investment plan.
- Transparency: Establishing a dedicated website to provide project updates and seek input from local residents, including public data reporting.
- Workforce Development: Partnering with UAW Local 3303 and local educational institutions to offer training opportunities that prepare workers for the green jobs of the future.
Background
Cleveland-Cliffs Inc Butler Works facility was selected as one of the 33 awardees of the Department of Energy’s Industrial Demonstrations Program (IDP), a key initiative funded by the Inflation Reduction Act and Bipartisan Infrastructure Law. It places the community of Butler, Pennsylvania at the forefront of the national effort to reduce greenhouse gas emissions in heavy manufacturing while fostering sustainable economic growth.
The electrification upgrade is expected to cost $193 million in total, and will not only cut down on-site greenhouse gas emissions but also enhance the quality of steel produced at the facility. The project is the latest example of the Biden-Harris administration's commitment to leading the nation to invest in clean energy, by supporting American manufacturers to produce critical components for clean energy infrastructure, such as electrical power and distribution transformers.
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.