{"id":333943,"date":"2026-08-12T14:14:38","date_gmt":"2026-08-12T14:14:38","guid":{"rendered":"https:\/\/www.clevescene.com\/?p=333943"},"modified":"2026-08-12T14:14:44","modified_gmt":"2026-08-12T14:14:44","slug":"ohio-steel-giant-aims-to-use-biden-climate-funds-for-polluting-project","status":"publish","type":"post","link":"https:\/\/www.clevescene.com\/news\/ohio-news\/ohio-steel-giant-aims-to-use-biden-climate-funds-for-polluting-project\/","title":{"rendered":"Ohio Steel Giant Aims to Use Biden Climate Funds for Polluting Project"},"content":{"rendered":"\n

This story was originally published<\/a> by Canary Media.<\/em><\/p>\n\n\n\n

Steel giant Cleveland-Cliffs was supposed to use up to $500 million from a Biden administration grant to usher in cleaner steelmaking in southwestern Ohio. Now, the company plans to instead put those funds toward a project that locks in old coal-based tech for decades and amps up local air pollution.<\/p>\n\n\n\n

In a July 23 earnings call<\/a>, Cliffs CEO Lourenco Goncalves confirmed that the company aims to redirect the 2024 grant \u2014 which Congress originally earmarked for work that accelerates industrial decarbonization \u2014 to align with the pro-fossil-fuel Trump administration\u2019s priorities.<\/p>\n\n\n\n

\u201cWe have made major progress on the re-scoping of the Middletown project in compliance with the Trump administration\u2019s energy dominance goals,\u201d Goncalves said.<\/p>\n\n\n\n

The money from the Department of Energy\u2019s now-dismantled Office of Clean Energy Demonstrations<\/a> was meant to build a new facility to replace a coke-powered blast furnace at Cliffs\u2019 Middletown Works. Blast furnaces use the dirty, coal-based fuel to purify iron ore into iron, which is then made into steel.<\/p>\n\n\n\n

The new \u200b\u201cdirect reduced iron<\/a>\u201d facility would have purified iron ore without coal or coke by employing ions from natural gas or hydrogen to strip away unwanted oxygen ions. Then, two electric melting furnaces would then have readied the resulting iron for the final steps of steelmaking in the plant\u2019s basic oxygen furnace.<\/p>\n\n\n\n

Cliffs had indicated it hoped to eventually use hydrogen at Middletown Works, and the DOE estimated the facility upgrades could have slashed greenhouse gas emissions<\/a> by up to 1 million tons annually.<\/p>\n\n\n\n

But last summer, amid the Trump administration\u2019s clawbacks of Biden-era clean energy funding, Cliffs began reevaluating the plan<\/a>. A February air-permit application submitted to the state revealed the firm\u2019s new idea<\/a>: Simply refurbish Middletown Works\u2019 blast furnace so it can run for another few decades, and add a cogeneration plant that uses the furnace\u2019s waste heat to generate electricity and steam for the facility.<\/p>\n\n\n\n

It wasn\u2019t clear back in February that this work would be funded by the DOE grant, given that Congress originally allocated the funds for \u200b\u201cadvanced industrial technology<\/a>,\u201d which is defined as something \u200b\u201cdesigned to accelerate greenhouse gas emissions reduction<\/a> progress to net-zero at an eligible facility.\u201d<\/p>\n\n\n\n

Goncalves\u2019 comments in last month\u2019s earnings call confirm that Cliffs does still plan to use the money for the Middletown Works, but to install run-of-the-mill technologies with questionable climate benefits.<\/p>\n\n\n\n

\u201cThe Middletown blast furnace is due for a reline by 2030,\u201d he said. \u200b\u201cAnd this DOE grant will allow us to go further in optimizing the furnace and maximizing energy efficiency by capturing and using blast furnace gas to generate electricity on-site.\u201d<\/p>\n\n\n\n

Making electricity from the blast furnace\u2019s gas is better than simply spewing it into the air, and would presumably offset some emissions from producing that power elsewhere. However, the project would still result in many more tons of greenhouse gases than the initial plan.<\/p>\n\n\n\n

Goncalves noted that Cliffs would have another public announcement about the project within a month or so. Company representatives did not answer Canary Media\u2019s follow-up questions about the work, its costs, emissions, or other issues.<\/p>\n\n\n\n

Climate advocates are lamenting Cliffs\u2019 walkback.<\/p>\n\n\n\n

\u201cThe original proposal would have cut climate pollution, it would have cut health-harming pollution, and it would have created jobs,\u201d said Hilary Lewis, steel director at Industrious Labs, which advocates for decarbonizing heavy industry.<\/p>\n\n\n\n

The cleaner-steel project would also have positioned the facility to compete favorably in markets where buyers still aim to lower their greenhouse gas emissions, she said.<\/p>\n\n\n\n

\u201cThis is a\u00a0horrible trade,\u201d Lewis\u00a0said.<\/p>\n\n\n\n

How much more polluting is Cliffs\u2019 new initiative?<\/h2>\n\n\n\n

Along with its climate impacts, Cliffs\u2019 U-turn will result in its neighbors breathing in more dangerous chemicals.<\/p>\n\n\n\n

Already, Middletown Works ranks in the top 10 polluters statewide<\/a> for several health-harming contaminants, according to a 2024 report from Industrious Labs.<\/p>\n\n\n\n

With the cogeneration plant and related upgrades, the plant is expected to annually emit 534 more tons of sulfur dioxide<\/a>, 334 more tons of carbon monoxide<\/a>, 179 more tons of nitrogen oxides<\/a>, and 12 more tons of chemicals that increase smog<\/a>, according to a draft permit<\/a> issued by the Ohio Environmental Protection Agency in June. There would also be nearly 100 additional tons of different sizes of particle pollution<\/a>.<\/p>\n\n\n\n

Yet while projected emissions would be higher than those for almost all times during the past five years, the draft permit concludes net reductions will occur for all those health-harming chemicals except carbon monoxide.<\/p>\n\n\n\n

That\u2019s because instead of comparing the projected emissions with those in recent years, the Ohio EPA uses data from 2013 to 2015 as a baseline. Back then, Middletown Works still ran a hyper-polluting facility to make coke on-site. That group of ovens shut down in October 2021<\/a>.<\/p>\n\n\n\n

Comments<\/a> filed by Industrious Labs and other environmental advocates challenge the Ohio EPA\u2019s use of old data to calculate those offsets. They argue that if the agency had used emissions numbers from the past decade as the baseline, it might have found that the plan surpassed thresholds that would trigger further regulation or pollution limits.<\/p>\n\n\n\n

Meanwhile, the Ohio EPA\u2019s offset calculation offer little comfort for some area residents who have long felt plagued by the plant\u2019s pollution.<\/p>\n\n\n\n

\u201cThe cogen plant will reduce Cliffs\u2019 energy use, saving them money, while they continue to harm [my] family and my neighbors\u2019 health, and [with] even more pollution,\u201d said Donna Ballinger, who lives approximately 1,000 feet from the Middletown Works and spoke at a July 9 public hearing<\/a>.<\/p>\n\n\n\n

Another local, Amy Wray, wrote to the Ohio EPA, \u200b\u201cIf it\u2019s going to increase pollutants then we don\u2019t want it. This town is already a toxic chemical soup.\u201d<\/p>\n\n\n\n

Still, Cliffs has substantial support from locals who see the plan as an environmentally sound way to keep the Middletown Works going.<\/p>\n\n\n\n

\u201cThe proposed improvements to Cleveland-Cliffs will significantly reduce the facility\u2019s carbon footprint while securing high-quality manufacturer and construction jobs for generations to come,\u201d said Brian Kuhbander, who spoke for the Construction and General Laborers\u2019 Local 534 union at the July 9 hearing.<\/p>\n\n\n\n

It\u2019s worth noting that the original green steel plan would have had big employment benefits, too. Besides protecting more than 2,000 existing jobs at the Middletown Works, the new facilities would have created 170 new permanent positions<\/a> in addition to 1,200 construction jobs.<\/p>\n\n\n\n

The public comment period on the draft permit is over, and the Ohio EPA expects to make a decision on a final permit by the end of this year, according to Dina Pierce, a public information officer for the agency. Cliffs has 18 months to begin construction once a permit is issued.<\/p>\n\n\n\n

How long it may take to finish the project remains unclear. As power demand from data centers skyrockets, waiting lists for turbines<\/a> needed for the cogeneration plant have grown to five years or more.<\/p>\n\n\n\n

Lewis of Industrious Labs said it\u2019s \u200b\u201cnot too late\u201d to switch back to the earlier approach, particularly since the company did a lot of work to develop the cleaner-steel plan. A 2024 press release from Cliffs said it was prepared to invest more than $1 billion<\/a> in addition to the government funding for that project, which would also have curbed its future production costs.<\/p>\n\n\n\n

\u201cThey can \u2014 and they should \u2014 bring back that original plan,\u201d Lewis said.<\/p>\n","protected":false},"excerpt":{"rendered":"

This story was originally published by Canary Media. Steel giant Cleveland-Cliffs was supposed to use up to $500 million from a Biden administration grant to usher in cleaner steelmaking in southwestern Ohio. Now, the company plans to instead put those funds toward a project that locks in old coal-based tech for decades and amps up local air pollution. In a July 23 earnings […]<\/p>\n","protected":false},"author":1384,"featured_media":318070,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","apple_news_api_created_at":"2026-08-12T14:14:42Z","apple_news_api_id":"4e2f13be-9ee4-4e8c-aec3-792ff591b735","apple_news_api_modified_at":"2026-08-12T14:14:47Z","apple_news_api_revision":"AAAAAAAAAAAAAAAAAAAAAA==","apple_news_api_share_url":"https:\/\/apple.news\/ATi8Tvp7kToyuw3kv9ZG3NQ","apple_news_cover_media_provider":"image","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_cover_video_id":0,"apple_news_cover_video_url":"","apple_news_cover_embedwebvideo_url":"","apple_news_is_hidden":"","apple_news_is_paid":"","apple_news_is_preview":"","apple_news_is_sponsored":"","apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"","apple_news_slug":"","apple_news_sections":["https:\/\/news-api.apple.com\/sections\/09551bb6-65e4-48a4-92e6-844c5c570ad6"],"apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"newspack_collection_is_cover_story":false,"newspack_collection_post_order":0,"_newspack_byline_active":false,"_newspack_byline":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"newspack_featured_image_position":"","newspack_post_subtitle":"Cleveland-Cliffs got $500M for a big green-steel push. Under Trump, the firm is \u200b\u201crescoping\u201d to work that perpetuates coal use and will boost local pollution.\n","newspack_article_summary_title":"Overview:","newspack_article_summary":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[23,107],"tags":[43236,223,1850,9717],"newspack_collection_taxonomy":[],"newspack_collection_section":[],"newspack_spnsrs_tax":[],"coauthors":[287],"class_list":["post-333943","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-ohio-news","tag-cleveland-cliffs","tag-donald-trump","tag-environment","tag-pollution","entry"],"apple_news_notices":[],"yoast_head":"\nOhio Steel Giant Aims to Use Biden Climate Funds for Polluting Project - Cleveland Scene<\/title>\n<meta name=\"description\" content=\"Ohio Steel Giant Aims to Use Biden Climate Funds for Polluting Project - Cleveland Scene\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.clevescene.com\/news\/ohio-news\/ohio-steel-giant-aims-to-use-biden-climate-funds-for-polluting-project\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ohio Steel Giant Aims to Use Biden Climate Funds for Polluting Project\" \/>\n<meta property=\"og:description\" content=\"Ohio Steel Giant Aims to Use Biden Climate Funds for Polluting Project - Cleveland Scene\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.clevescene.com\/news\/ohio-news\/ohio-steel-giant-aims-to-use-biden-climate-funds-for-polluting-project\/\" \/>\n<meta property=\"og:site_name\" content=\"Cleveland Scene\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/ClevelandScene\" \/>\n<meta property=\"article:published_time\" content=\"2026-08-12T14:14:38+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-08-12T14:14:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.clevescene.com\/wp-content\/uploads\/2025\/09\/Cleveland-Works.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"864\" \/>\n\t<meta property=\"og:image:height\" content=\"501\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/webp\" \/>\n<meta name=\"author\" content=\"Kathiann M. 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