Kingspan makes investment in H2 Green Steel
Earlier announced investors in the same fundraising round include Scania, the IMAS Foundation (sister foundation to the INGKA Foundation, owner of INGKA Group, which owns and operates the majority of IKEA stores globally) and Vargas. Total first phase financing amounts to around €2.5 billion.
H2 Green Steel is pioneering new production methods for steel manufacturing using hydrogen and its production process replaces coke and coal with green hydrogen to achieve an almost a totally CO2-free steel product. It is targeting operations from 2024 and annual production capacity of 5 million tons by 2030.
Moving to use of only low emissions steel would see Kingspan reduce embodied carbon in its insulated panel products by approximately over 45%.
It would also make a substantial contribution towards Kingspan’s 2030 goal of cutting scope 3 emissions from its supply chain by 50%, by delivering up to a 35% reduction in the Group’s scope 3 emissions.
Gene Murtagh, CEO of Kingspan Group said given the building industry is a major user of steel, and steel production is a major source of carbon emissions, it is clear that Kingspan’s Planet Passionate commitment to re duce emissions in its primary supply chain must include a new model of steel production.
"We recognise that for companies to make a meaningful contribution to address the climate crisis they need to be prepared for radical thinking and actions, and our determination to transform our supply chain reflects this," he said.
Carl Erik Lagercrantz, Chairman of the Board of H2 Green Steel, said steel is vital to many industries, but the extent of its contribution to emissions from the building and infrastructure sector is not well understood, and green steel will be an important component as it seeks to decarbonise.
The building and infrastructure sectors are the biggest users of steel, accounting for 52% of global demand, compared to 12% from the car industry. Steel accounts for 7% of emissions emitted globally.
"This will be a first investment and long-term supply partnership with a company in this space, and reflects the depth of demand we see for the steel we will be producing," said Lagercrantz.
Ultimatley Kingspan expects to be a single-digit minority shareholder in H2 Green Steel.
Contractor issues head disputes list in 2020: Arcadis report
The average value of disputes globally rose from $30.7 million in 2019 to $54.26 million in 2020, while the length of disputes fell from 15 months in 2019 to 13.4 months, according to an Arcadis report.
The data, featured in Arcadis' 11th annual report, illustrates industry-wide ripple effects of the COVID-19 pandemic although interestingly the overall volume of disputes stayed relatively the same in 2020 as in 2019.
While trends in the value and length of disputes varied from region to region, all regions surveyed saw an increase in "mega disputes" related to bigger capital programs and private projects. Notably, more than 60% of survey respondents encountered project impacts due to COVID-19.
Owners, contractors, or subcontractors failing to understand and/or comply with their contractual obligations became the leading cause of construction disputes in 2020 (jumping from 3rd place in 2019), followed by owner-directed changes and third-party or force-majeure changes as the second and third-leading causes, respectively.
Highlights from the report include:
- Proper contract administration was a theme across the globe for the successful and early resolution of disputes
- Most disputes were settled through party-to-party negotiation, and a willingness to compromise played a key role in early resolution
- Among regions surveyed, the buildings (education, healthcare, retail/commercial, government) sector saw the most disputes
- In North America, construction dispute value rose from $18.8 million in 2019 to $37.9 million in 2020, while the length of disputes shortened from 17.6 to 14.2 months.
While cost and length have changed since 2019, risk management was still seen as the most effective claims avoidance tactic, while owner/contractor willingness to compromise was once again the top-ranked factor for the mitigation/early resolution of disputes.
"COVID-19 irrevocably changed every industry," said Roy Cooper, head of contract solutions for Arcadis North America. "Construction disputes experts will have to continue to adapt, even post-pandemic, as workforce expectations, climate events and government infrastructure funding change how projects are designed and contracted in the future."
The research presented in the report was compiled by Arcadis based on survey responses, global construction disputes the team handled in 2020 and contributions from industry experts.