At Butler Works, energy secretary touts American steel, workers
BUTLER TWP — U.S. Secretary of Energy Jennifer Granholm visited Cleveland-Cliffs’ Butler Works on Monday, April 22, where she said the plant would receive a $75 million grant from the department to further increase the plant’s energy efficiency.
Granholm’s visit follows the department’s final ruling April 4 on energy standards, which gives Cleveland-Cliffs until 2029 to increase the efficiency of its grain-oriented electrical steel to standards currently attainable only by amorphous steel. Granholm took a tour of the plant, alongside other Butler County and state officials, before speaking to plant workers and the community at large.
Cleveland-Cliffs is the only domestic producer of grain-oriented electrical steel, which is used in distribution transformers, and Granholm said the department changed its efficiency standards after hearing the new mandate would shutter Butler Works. She also said the move will keep manufacturing jobs in the U.S. for generations.
“This isn’t about next month; it’s not about next year. It’s about the next generation of American technology, American manufacturing and American workers,” she said. “Around the world, demand is increasing for clean products (that) produce less pollution, built to last; and we want those stamped ‘Made in America.’”
Speakers Monday included U.S. Rep. Mike Kelly, R-16th; U.S. Rep. Chris Deluzio, D-17th; Lourenco Goncalves, president and CEO of Cleveland-Cliffs; Daniel Vicente, director for the United Auto Workers Region 9; and Jamie Sychak, president of UAW Local 3303.
In addition to the celebration of the change in the new energy rule, the speakers also lauded the union workers, who made comments during the rule’s drafting period that were relayed to U.S. officials. Before the rule’s change, Cleveland-Cliffs would have only had until 2025 to increase the efficiency of its grain-oriented electrical steel. Sychak said the change to the rule represents the democratic system in action, and the outcome is favorable for everyone.
“There were 214 comments submitted to the Department of Energy that are overwhelmingly from experts in one of the fields, whether it be power producers, transformer manufacturers, market analysis,” Sychak said. “I think it’s all great; I think it’s a relationship and acknowledgment that should have happened in any critical consideration like this rule.”
The change to the rule, Granholm said, was influenced by the input of stakeholders in the energy sector. She added that the energy standards being implemented will still cut down on carbon emissions from Cleveland-Cliffs, as well as other manufacturing plants.
“Listening made it clear that you needed some more time to achieve what we ended up settling on,” she said. “This final rule is going to save the U.S. over $14 billion in energy costs; it’s going to slash 85 million metric tons of dangerous carbon dioxide pollution … it provides critical, long-term certainty for domestic manufacturing investments and, most importantly, it protects jobs.”
The $75 million grant is part of a decarbonization effort being led by the U.S. Department of Energy, and Cleveland-Cliffs will use the money to replace two existing natural-gas fired high-temperature slab reheat furnaces at Butler Works with four electrified induction slab reheat furnaces. This will bring optimum efficiency to its production of electrical steels, according to Gocalves, who also said Butler Works is working to replace carbon with hydrogen use.
“The $75 million, that is going to be used to transform our existing reheating furnace to an induction furnace, and we will only use electricity, not use any gas,” Goncalves said. “We are replacing everything related to carbon with ... hydrogen. Hydrogen is the real game-changer in steel making.”
Goncalves also said Cleveland-Cliffs is interested in buying U.S. Steel “when” its purchase by Nippon Steel is blocked by the U.S.
“The Japanese have no technology to bring to us — zero,” he said. “They don’t have natural gas; they don’t have hydrogen … we are going to keep the office in Pittsburgh.”
In his remarks at the event, Kelly said the altering of the energy efficiency mandate would not have happened without the efforts of the UAW, and he urged everyone in the room to continue making their voices heard in lawmaking. He added that keeping manufacturing in Butler County will help the region thrive.
“I can’t tell you how proud I am to represent you,” Kelly said. “When I look at the size and scope of grain-oriented electrical steel, it’s not decades; it’s lifetimes.”
Deluzio, too, said the issue of keeping jobs in Western Pennsylvania is not a partisan issue, and he was happy that so many parties came together to speak up against the rule that would have put Cleveland-Cliffs out of business.
“Congressman Kelly and I started a letter, legislation; we had help in the Senate. We had help right here in Butler,” he said. “We had a secretary who heard us, we had an administration that heard us.”
Granholm said the Department of Energy will soon announce another round of grants companies can apply for to decrease emissions, which Cleveland-Cliffs could also apply for. In her talk with the staff of Butler Works, Granholm said the future is bright for domestic manufacturing, and she said more companies are creating more products and, therefore, jobs.
“All of our investments are connected; all of our policies are designed to put American manufacturing, American workers back on top,” Granholm said. “Companies have announced over 600 new or expanded factories since the president took office creating tens of thousands of jobs just in this energy space alone.”
