U. S. Steel and CarbonFree Ink MoU to Capture CO2 Emissions at One of the Largest Integrated Steel Mills in North America

CarbonFree’s SkyCycle™ Technology Would Capture and Mineralize up to 50,000 Metric Tons of CO₂ Annually from U. S. Steel’s Facility in Gary, Indiana

United States Steel Corporation (NYSE: X) (“U. S. Steel”) and CarbonFree Chemicals Holdings, LLC (CarbonFree) have signed a non-binding Memorandum of Understanding (MoU) to jointly pursue the capture of CO₂ emissions generated from U. S. Steel’s Gary Works manufacturing plant using CarbonFree’s SkyCycle™ technology. If a definitive agreement is reached, the project is expected to capture and mineralize up to 50,000 metric tons of CO₂ per year, the equivalent to carbon emissions from nearly 11,000 passenger cars.

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SkyCycle, CarbonFree’s second-generation technology, is a modular, scalable and patented technology designed to directly capture CO2 emissions from a wide variety of hard-to-abate industrial emitters. (Photo: Business Wire)

CarbonFree’s patented SkyCycle technology captures carbon emissions from hard-to-abate industrial sources before entering the atmosphere, converts the CO₂ into the specialty chemical precipitated calcium carbonate (PCC), and produces hydrochloric acid (HCl) as a co-product.

“As we aim to widely introduce and scale our technology to industrial facilities across the globe, we are thrilled for the possibility of bringing our SkyCycle technology’s carbon capture capabilities to U. S. Steel’s Gary Works plant, one of the largest integrated steel mills in North America,” said Martin Keighley, CEO of CarbonFree. “We are committed to working closely with U. S. Steel to achieve their sustainability goals and to further our mission of helping to enable the world’s transition to net zero carbon emissions.”

Located in Gary, Indiana, U. S. Steel’s Gary Works has annual production capability of 7.5 million net tons of raw steel per year. The MoU establishes a framework for discussions regarding the formation of a commercial venture. The decision between CarbonFree and U. S. Steel to enter into a definitive agreement is expected to be made prior to the end of 2023, and if a final agreement is executed, the parties are targeting 2025 for commencement of operations. The parties may also consider collaborating on more carbon capture, utilization and storage projects in the future.

“We are eager to enter the next phase of discussions with CarbonFree to explore the possibility of meaningful CO₂ emission reductions in our operations in a capital efficient manner,” said Richard L. Fruehauf, SVP – Chief Strategy & Sustainability Officer at U. S. Steel. “Working with CarbonFree could be a meaningful step in our efforts to decarbonize the Gary Works plant while developing technology and knowhow that we could apply to other facilities within our footprint. These potential collaborations are critical to U. S. Steel as we continue our mission of providing profitable steel solutions for people and planet.”

SkyCycle technology is modular, scalable and patented and is designed to directly capture CO₂ emissions from industrial emitters. The technology produces PCC for sale into the global specialty chemicals market, and calcium carbonate for the sequestration of CO₂. PCC is a high-value product used for a variety of industrial purposes, including in the manufacturing of paper, plastics, ceramics, paints, coating, adhesives, sealants, rubber and cleaning products. Additionally, CO₂ that is converted to calcium carbonate can be permanently stored as an environmentally friendly mineral.

For more information on SkyCycle, visit the CarbonFree website or follow on LinkedIn.

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About U. S. Steel

Founded in 1901, United States Steel Corporation is a leading steel producer. With an unwavering focus on safety, U. S. Steel’s customer-centric Best for All^® strategy is advancing a more secure, sustainable future for U. S. Steel and its stakeholders. With a renewed emphasis on innovation, U. S. Steel serves the automotive, construction, appliance, energy, containers, and packaging industries with high value-added steel products such as U. S. Steel’s proprietary XG3^® advanced high-strength steel. U. S. Steel also maintains competitively advantaged iron ore production and has an annual raw steelmaking capability of 22.4 million net tons. U. S. Steel is headquartered in Pittsburgh, Pennsylvania, with world-class operations across the United States and in Central Europe. For more information, please visit www.ussteel.com.

About CarbonFree

CarbonFree Chemicals Holdings, LLC is a privately held company. CarbonFree has invested over 17 years into research and development to prepare to bring its SkyCycle ™ technology to hard-to-abate industries around the world. CarbonFree’s mission is to capture 10% of the world’s industrial carbon, thereby helping industries and companies reach their net zero goals. For more information about CarbonFree, visit www.carbonfree.cc.

U. S. Steel Cautionary Note Regarding Forward-Looking Statements

This release contains information that may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. U. S. Steel intends the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in those sections. Generally, U. S. Steel has identified such forward-looking statements by using the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “target,” “forecast,” “aim,” “should,” “plan,” “goal,” “future,” “will,” "may" and similar expressions or by using future dates in connection with any discussion of, among other things, the construction or operation of new or existing facilities and operating capabilities, operating or financial performance, trends, events or developments that U. S. Steel expects or anticipates will occur in the future, anticipated cost savings, potential capital and operational cash improvements, statements regarding U. S. Steel’s future strategies, products and innovations, statements regarding U. S. Steel’s greenhouse gas emissions reduction goals, and statements expressing general views about future operating results. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. Forward-looking statements are not historical facts, but instead represent only U. S. Steel’s beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside of U. S. Steel’s control. It is possible that U. S. Steel’s actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. U. S. Steel’s management believes that these forward-looking statements are reasonable as of the time made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. U. S. Steel undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from U. S. Steel’s historical experience and its present expectations or projections. These risks and uncertainties include, but are not limited to, the risks and uncertainties described in “Item 1A Risk Factors” in U. S. Steel’s Annual Report on Form 10-K for the year ended December 31, 2022 and those described from time to time in its future reports filed with the Securities and Exchange Commission.

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