IFC’s €250 million financing package includes up to €150 million from IFC’s own account and up to €100 million in mobilized funds from other lenders, such as ING. This funding will bolster the sustainable forest management program of Aperam BioEnergia, Aperam’s forestry and renewable energy subsidiary in Brazil. Aperam BioEnergia manages 150,000 hectares of forest, including over 60,000 hectares of natural vegetation preserves and wildlife corridors. Aperam has fully replaced fossil coal with charcoal from FSC®-certified forests in its Brazilian production facilities, significantly reducing its carbon footprint.
The investment will support the acquisition of complementary eucalyptus plantations and the modernization of Aperam’s charcoal-producing kilns with cleaner and more efficient technology, further enhancing the sustainability of Aperam BioEnergia operations. As a key innovation, this investment will help pioneer the company’s commercial-scale production of bio-oil, captured from the waste of the charcoal production process. This bio-oil can replace synthetic fuel products, helping to avoid greenhouse gas emissions and improving the circularity of Aperam’s operations.
“We are pleased to establish this partnership with Aperam to foster innovative solutions in the steel industry. This investment underscores IFC’s commitment to sustainable development and environmental stewardship. By supporting such a project, IFC aims to provide innovative solutions that benefit both the economy and the environment,” said Olaf Schmidt, IFC regional industry director.
This investment marks IFC’s first initiative to support the sustainability of the metals sector in Brazil. It will create employment opportunities, reduce carbon emissions, and enhance sustainable forest management practices. Moreover, the application of IFC’s environmental and social performance standards will help Aperam mitigate risks and upgrade processes to ensure best practices in managing environmental impacts.
“At Aperam, sustainability is at the core of our strategy, and this partnership with IFC reinforces our commitment to pioneering low carbon steel production. Through this investment, we will continue to lead the industry in innovative and responsible solutions that not only reduce our carbon footprint but also promote circular economy practices. From increasing the share of recycled materials in our products to leveraging our own sustainably-managed forests for carbon sequestration, we are taking tangible steps to drive real impact. We are proud to work alongside IFC to accelerate the transformation of the steel sector towards a more sustainable future,” said Timoteo Di Maulo, Aperam’s CEO.
