Electra Raises $76.3 Million for Green Steel Production
Electra, a startup focused on decarbonizing the steel industry, has secured $76.3 million in funding. The company aims to raise a total of $256.7 million in this round, according to a recent regulatory filing.
Electra's innovative approach involves electrowinning, a process that uses electricity to extract pure iron from low-grade ore. This method offers a cleaner alternative to traditional blast furnaces, which rely on fossil fuels and contribute significantly to carbon emissions. Steelmaking currently accounts for 7% of global carbon emissions.
While electrowinning is established for metals like copper and nickel, applying it to iron production has presented challenges, primarily due to the need for high-grade ores, which increases costs. Electra claims its acid-based process overcomes this hurdle by utilizing lower-grade ores, making it cost-competitive with traditional methods.
The process involves heating a solution to approximately 60°C and passing an electric current through it. The resulting iron plates are then used as feedstock for electric-arc furnaces, which can also be powered by renewable energy. This combination of electrowinning and electric-arc furnaces has the potential to drastically reduce carbon emissions in steelmaking.
This latest funding round follows an $85 million investment in 2022 from prominent backers including Amazon, Breakthrough Energy Ventures, BHP Ventures, and Nucor. This investment aligns with the growing focus on green energy solutions and sustainable practices. For more on sustainable technology, see Xiaomi's new walkie-talkie.