As the world pushes toward net-zero emissions, the steel industry—responsible for 7-9% of global CO₂ emissions—is under intense scrutiny. This article explains the concept of green steel, the technologies driving it, and the hurdles ahead.
- What is Green Steel?
Green steel is produced with significantly reduced or zero carbon emissions.
Traditional steelmaking relies on coal-based blast furnaces; green steel uses alternatives like hydrogen or electric arc furnaces powered by renewable energy. - Technologies Behind Green Steel
Hydrogen-Based Reduction: Companies like HYBRIT in Sweden are replacing coking coal with hydrogen.
Recycling and Electric Arc Furnaces (EAF): Producing steel using scrap reduces emissions by up to 75%.
Carbon Capture and Storage (CCS): Capturing CO₂ emissions from existing facilities to offset environmental impact. - The Business Case for Green Steel
Market Demand: Major automakers like Volvo and BMW are prioritizing green steel in their supply chains.
Regulatory Incentives: EU’s Carbon Border Adjustment Mechanism (CBAM) imposes tariffs on high-carbon steel imports. - Challenges and Opportunities
Cost: Green steel can be 20-30% more expensive than traditional steel.
Infrastructure: The shift to hydrogen-based processes requires significant investment.
Case Study: ArcelorMittal’s successful pilot of a hydrogen-based steel plant in Hamburg.
Conclusion
Green steel is no longer a distant goal—it is becoming an industry imperative. Early movers will reap rewards as demand for sustainable products rises globally.
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