Illustration: Sarah Grillo/Axios
Nippon Steel's plan to buy U.S. Steel would lock in reliance on fossil fuels and potentially cause job losses, the Sierra Club and about two dozen other advocacy groups have told Congress.
Why it matters: The letter provided to Axios — sent to 12 lawmakers representing steel regions — marks the first time that major climate concerns have been publicly raised about the nearly $15 billion proposed deal.
- "Nippon Steel's fixation on coal-dependence would be the death knell for U.S. Steel facilities," the lawmakers said of the Japanese steelmaker's plan.
State of play: The letter comes as the inter-agency Committee on Foreign Investment in the United States weighs the deal.
- CFIUS said Aug. 31 that the transaction posed a risk to national security by threatening the steel supply chain for critical U.S. industries.
- In September, the panel allowed Nippon to refile its application, meaning a decision could be returned after the Nov. 5 election.
Driving the news: The groups argue that Nippon's plan will undermine the momentum to clean up the steel industry.
- The Energy Department has recently backed industrial demonstration projects to use hydrogen and electrify steel facilities, the groups point out.
The other side: A U.S. Steel spokesperson said the company was committed to achieve net-zero greenhouse gas emissions by 2050.
- Nippon would invest $2.7 billion into union-represented facilities that would bring environmental benefits, she said.
- "A transaction with Nippon Steel is the best avenue to ensure that U. S. Steel will be able to thrive well into the future," she said.
What they're saying: "The president's and the vice president's position is that it is vital for U.S. Steel to remain an American steel company that is domestically owned and operated," Saloni Sharma, a White House spokesperson, said in a statement. "The president told our steelworkers he has their backs, and he means it."
- Former President Donald Trump has also said he would block the deal if he retakes the White House.
