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‘Our Louisiana Purchase’: Deal reached to move Green Bay’s century-old coal piles

Tarped over mounds sit behind green grass and a river, bordered by a highway.
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For the people of Green Bay, the long-awaited deal to move century-old coal piles from the riverfront near downtown is a big deal.

How big?

“This is our Louisiana Purchase. This is our purchasing of Alaska,” said state Rep. Dave Steffen, R-Howard. “It doesn’t get any bigger than this. We are not only just witnessing history, we’re part of it today.”

Steffen was one of the Green Bay-area lawmakers of both parties who were on hand Thursday before the Brown County Board of Supervisors approved a deal that will pave the way toward moving the hulking black piles that local officials and residents have hoped to oust for decades.

Thursday’s deal, approved unanimously after a closed session of the county board, sets the general framework for a lease agreement that will allow the coal to be relocated.

The coal sits on land along the Fox River that community leaders see as ripe for redevelopment. A very visible and not-so-pretty symbol of the city’s industrial heritage, it is also a nuisance for some residents who say dust from the piles blows into nearby neighborhoods.

But they are also a landmark, one that was immortalized by pranksters who decades ago made a “Ski Green Bay” poster of a man skiing down a coal pile with the skyline of the city behind him. That image was more recently included in a mural downtown.

A desire to move the coal piles to someplace less visible has been on the wish list of generations of city leaders.

“It’s literally something that mayors of the city of Green Bay and other community leaders have been working on for upwards of 75 years,” said Green Bay Mayor Eric Genrich.

Thursday’s vote means the county will not lose a $15 million federally-funded state grant that was in jeopardy after the county board altered a previous deal in December and negotiations stalled. The county had until Tuesday to come to an agreement and until Friday for the board to approve it, or risk losing the grant.

C. Reiss Co. owns the coal piles. The company has operated the bulk commodities storage facility on Mason Street, located along the the Fox River, since 1900.

Under the deal, C. Reiss and the county will work to finalize a lease agreement for a 16-acre parcel of land at a former power plant site the county is redeveloping for the Port of Green Bay. The company would also lease up to 1.5 acres for a stormwater pond that it would maintain. 

But the agreement stipulates that C. Reiss, or other users, may not store coal at the power plant site.

Rather, CEO Keith Hasselhoff said coal would be stored at a site near the power plant, known as the Fox River Terminal. C. Reiss’ parent company currently stores salt and other bulk commodities at the Fox River Terminal.

When the 16-acre parcel is ready, Hasselhoff said C. Reiss plans to move salt from the terminal site to the power plant. 

“As that salt at Fox River depletes and opens up more space at Fox River, we’ll be able to land new vessels of coal at Fox River, which then will allow us to deplete the inventories that we have at Mason Street,” Hasselhoff said.

At a press conference before the meeting, Brown County Executive Troy Streckenbach said moving the coal from downtown “is not going to happen overnight” and could take “a number of years.”

County Board chair Patrick Buckley said the final negotiations came down to the eleventh hour. He said talks were ongoing up through Tuesday night, when all parties came to a consensus. He said the county’s corporation counsel spent Wednesday and Thursday getting the agreement in writing for the board’s approval.

“It’s really a group effort here to get this done,” he said. “A lot of people did not think this was going to get done. … But a lot of hard work went into it.”

The lease for the power plant site still needs to be fully ironed out, but the agreement requires the lease be fully executed by Sept. 15 or the parties could be required to go to arbitration.

According to the conditions approved Thursday, it would run for 60 years with the annual rent set at $350,000 with inflationary increases every five years.

The length of a lease had been one of the biggest sticking points in past agreements. Back in December, C. Reiss had wanted a lease that ran up to 75 years, while the county board wanted a 30-year lease with a 10-year extension option.

Streckenbach acknowledged that the board previously had reservations about a long-term lease. But he said all sides had to make concessions in the negotiation.

“Ultimately, because of what we came to an agreement with and everybody making concessions, the county board felt comfortable going forward with the length that was proposed,” he said.

The agreement also stated that the city of Green Bay would provide up to $2.2 million if the county faces funding shortfalls related to the coal relocation effort. 

Genrich said the addition of the city’s financial commitment was “one of the latter changes” that was made to the agreement and was something that he and Council President Brian Johnson had committed to in their discussions with county officials.

“Our priority is Mason Street and (doing) whatever was necessary within reason to make that redevelopment project possible,” he said. “The commitment that we all made to each other in the room was like, ‘We’re going to get this done regardless.’”

Genrich said the full Green Bay City Council will discuss the up to $2.2 million in funding at its meeting on Tuesday.

This story was originally published by WPR.

‘Our Louisiana Purchase’: Deal reached to move Green Bay’s century-old coal piles is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

Steelmaker’s bid to buy U.S. Steel would extend life of Indiana plant — along with its emissions

A blue industrial building labeled "Gary Works"

A prospective buyer’s recent commitment to reinvest in a Gary, Indiana, steel plant sought to address union and government leaders’ worries about the sale’s potential impact on jobs and U.S. steelmaking capacity.

The plan to extend the life of the country’s largest and most carbon-emitting coal-fired blast furnace, however, has also heightened concerns from Northwest Indiana residents most affected by the facility’s air pollution.

“This is not acceptable,” said Susan Thomas, director of legislation and policy for Just Transition Northwest Indiana. “We now have technology for doing this much more sustainably.”

A study released Monday quantifies the public health threat highlighted by local clean air advocates, linking the Indiana plant to dozens of annual emergency room visits and premature deaths, as well as thousands of asthma attacks. 

Japan-based Nippon Steel is seeking approval from U.S. regulators for a $15 billion acquisition of U.S. Steel, the storied domestic steelmaker whose facilities include the Gary Works plant in Northwest Indiana, along with others in Ohio, Michigan and Pennsylvania, key battleground states where the proposed sale has been a subject of presidential campaigning. Vice President Kamala Harris and former President Donald Trump oppose the sale, as does President Joe Biden.

Much of the public discussion around the proposed sale has centered on its economic and national security implications, but those living near the plant have different concerns and demands. They say they’ve suffered for too long from steel industry pollution, and they only want Nippon as a neighbor if the company installs a new type of furnace that burns with lower or even zero emissions. 

“I would love to see Gary Works transform to green sustainable steel, bringing more jobs, cleaning up the area, that would be an amazing win-win,” said Libré Booker, a librarian who grew up near the mill. “The people have lived under these conditions for far too long. It’s definitely time for a change.”

Gary Works is the largest integrated steel mill in North America, employing about 2,200 people. Northwest Indiana is also home to two other steel mills — Burns Harbor and Indiana Harbor — and two coke plants that turn coal into the high-density raw material for steel. 

The populations in a three-mile radius of the Gary Works and Indiana Harbor steel mills are 96%-97% people of color, and almost two-thirds low-income people. The new study by Industrious Labs, a nonprofit focused on emissions reduction, used the EPA’s COBRA model to find emissions from the Gary Works plant likely are linked to 57-114 premature deaths, 48 emergency room visits and almost 32,000 asthma attacks each year.

The report cited the mills’ and coke plants’ emissions of sulfur dioxide, nitrogen oxides, carbon monoxide, particulate matter, and lead, all pollutants with direct impacts on public health. Gary Works is the number one emitter of PM2.5 particulate matter in the state, according to the company’s self-reported data analyzed by Industrious Labs. 

Industrious Labs steel director Hilary Lewis said the results bolster the demands of clean steel advocates, who want to see coal-fired blast furnaces replaced by direct-reduction iron, or DRI, furnaces powered by hydrogen made with renewable energy, known as green hydrogen. 

Booker was among 15 locals who participated in a recent “Sustainable Steel Community Cohort” run by Industrious Labs, attending five workshops learning about the science and policy of cleaner steel. 

Green hydrogen, green steel 

Green hydrogen is still not produced in large quantities anywhere in the U.S., and all the hydrogen currently produced in the country would not even be enough to power one steel mill, noted Seth Snyder, a partner in the Clean Energy Venture Group, at a recent conference in Chicago focused on clean hydrogen. 

But DRI furnaces can be powered by natural gas, which results in much lower emissions than coal. Cleveland Cliffs — which owns the Indiana Harbor and Burns Harbor mills — is transforming its Middletown, Ohio steel mill to gas-burning DRI with the help of a $500 million incentive under the Inflation Reduction Act. The company says the conversion will make it the steel mill with the lowest emissions in the world. 

With some modifications, DRI furnaces can burn a blend of natural gas and hydrogen or almost entirely hydrogen, experts say, meaning investment in a gas-burning DRI furnace could be a step on the way to “clean steel.” Lewis and other advocates, however, say gas-burning furnaces are not their goal, and they want the industry to transition off fossil fuels entirely. 

Hydrogen can be blended into fuel for traditional blast furnaces too, but the maximum emissions reductions that can be achieved that way are 21%, according to a paper on hydrogen-powered steel production in Europe by the Norwegian non-profit science organization Bellona. 

Nippon has announced it would invest $300 million in restoring the aging blast furnace at Gary Works, keeping it running for another 20 years. Installing a DRI furnace, meanwhile, typically costs over $1 billion.

“There is a gap,” said Lewis. “But these companies have the funding available. They have the money to make these decisions, they’re just choosing not to.” 

Incentives for change 

The IRA incentives tapped by Cleveland Cliffs are no longer available, but this summer California U.S. Rep. Ro Khanna introduced the Modern Steel Act, which would provide $10 billion in low-cost loans and grants, plus tax breaks and other incentives for new and revamped low-emissions steel mills, including hydrogen-fueled DRI.

Separately, lucrative tax credits soon to be available for “clean hydrogen” under the IRA could also make hydrogen-powered steel more financially viable. The specific rules for the tax credit — known as 45V — are still being finalized, amid controversy over what should qualify a project’s hydrogen as “clean.” 

“There are a number of different incentives in the IRA that can help steel companies build out their own green hydrogen infrastructure,” Lewis said. “Everything should be on the table. Steel companies would be such huge off-takers for green hydrogen, they can build their own economy here.”

At the BP Whiting oil refinery, 10 miles from Gary Works, there are plans underway for production of blue hydrogen, or hydrogen made with natural gas followed by capture and sequestration of the emissions. The plan is a marquee part of the Midwest (MachH2) hydrogen hub, one of seven planned hubs nationwide slated to receive $7 billion total in federal funding. Such blue hydrogen could be used to power a steel mill, with theoretically no resulting greenhouse gas or public health-harming emissions.

However, local environmental and public accountability leaders are strongly opposed to blue hydrogen production in the region, since carbon sequestration has not yet been done successfully on a large scale in the U.S., and it would entail pipelines carrying carbon dioxide from the refinery to a sequestration site. 

“The carbon capture component makes us very nervous, it seems to me they’re rushing into this without really taking the time to study it more seriously,” said Northwest Indiana resident Connie Wachala, another graduate of the sustainable steel program. “That might be because of all the money DOE is making available to industry. I wish our elected and industry officials would start thinking more creatively about how to make [green hydrogen] happen, how to make things better for the people in the neighborhoods and around the steel mills as well as for the shareholders.”

A different future 

All four of Wachala’s grandparents came from Poland to work in the steel mills. 

“Growing up in the 1950s, I remember my mom hanging the laundry up in the yard on a clothes line. If the wind was blowing a certain way, you’d get black particles on the clothes,” remembered Wachala, who worked as a creative writing teacher before retiring. “My dad’s car was always covered with that soot.”

Booker’s mother worked as a crane operator at the now-closed Bethlehem Steel mill in Burns Harbor, Indiana — among the first wave of women of color to be hired.

“I was proud she worked in the mill and took care of us, but I did not want [that job] whatsoever, seeing her come home every night after the swing shift, with the big old boots and jacket,” said Booker. “I wanted to go to college. It was a source of contention with my mom and I for some years.” 

That was in the days when locals largely believed, “if you want a good partner, you’ve got to get one that works in the mill,” she continued. “It was like a prestigious job and position. People looked up to people who worked in the mill.” 

Now, Booker laments, “Gary is like a joke,” scorned for its economic decline since the steel industry automated and shrunk — hemorrhaging jobs, and for the pollution that is still emitted. If the merger with Nippon does not go through, it’s widely believed U.S. Steel would eventually close the mill, as it closed its South Works plant in Southeast Chicago decades ago. At their height, the South Works and Gary Works plants together employed about 40,000 people in the Chicago area. 

Thomas wrote a frustrated rebuttal to the Chicago Tribune editorial board opining that the Nippon merger was crucial to Gary’s future. She and other local leaders say they don’t want the mill to close, but they can demand better than the extension of heavily polluting industry. 

“It’s just perpetuation of this as a sacrifice zone,” said Thomas. “‘This is what you’ve always been, this is how we’re going to keep you.’ But that’s not going to fly anymore.”

Steelmaker’s bid to buy U.S. Steel would extend life of Indiana plant — along with its emissions is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

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