What is Green Steel? A Sustainable Revolution in Steelmaking
What is Green Steel? A Sustainable Revolution in Steelmaking
Blog Article
Evolving Steel Production Process
The traditional steel making process relies heavily on coal and emits large amounts of carbon dioxide. As concerns over climate change grow, steel manufacturers are exploring more sustainable production methods. Many major steel companies are shifting their focus to lower carbon emissions and produce 'green steel'. They are investing in innovative technologies to transform the steel making process.
Electric Arc Furnace Gaining Popularity
One of the promising technologies gaining traction is electric arc furnace (EAF). EAF produces steel by melting scrap Green Steel and direct reduced iron in electric furnaces. This eliminates the need for coke ovens and blast furnaces required in the traditional integrated route. EAF relies on electricity rather than coal, which results in much lower carbon emissions compared to the blast furnace basic oxygen furnace route. Major steel makers like ArcelorMittal and Nucor have increased their EAF capacity significantly in recent years. EAF currently accounts for over 30% of global steel production and its share is expected to grow further.
Hydrogen Emerges as a Key Element
Apart from EAF, hydrogen is emerging as an important element in greening the steel sector. Major players are investing in pilot projects to use hydrogen in steel making. Hydrogen can be used instead of carbon fuels like coal and natural gas in direct reduction of iron ore and melting scrap in electric furnaces. When hydrogen is used as a reducing agent or energy source, the only by-product is water. This offers a viable pathway to significantly lower carbon footprint of steel production. Swedish steel giant SSAB plans to replace coal with hydrogen at its Oxelösund plant by 2025. Other large producers like ArcelorMittal and Voestalpine are also conducting feasibility studies.
Carbon Capture and Storage Tech Hold Promise
While shifting to low carbon production methods is key, steel companies are also exploring ways to reduce emissions from existing integrated steel plants. Carbon capture, utilization and storage (CCUS) technology presents an opportunity to trap carbon dioxide emissions at the source during iron and steel making. The captured CO2 can then be stored deep underground or utilized for other purposes. Companies like thyssenkrupp and SSAB are evaluating CCUS technologies through pilot projects. If implemented at large commercial scale, CCUS could help cut emissions from incumbent plants substantially without needing major infrastructure investments.
Renewable Energy Powers Steel Sector
Adopting renewable energy sources like wind and solar is another avenue steel makers are pursuing. Procuring electricity from renewable power instead of fossil fuels brings down the carbon footprint of EAF steel plants. Companies located in regions with abundant renewable energy resources benefit the most. Swedish steel giant SSAB sources over 50% of its global electricity consumption from renewable power. In the US, electric arc mini mills promote themselves as 'green steel' producers due to reliance on renewable energy. As costs of wind and solar continue to decline, more steel plants are expected to transition to renewable power sourcing in future.
Green Hydrogen Project Takes Off in Sweden
In June 2022, SSAB, LKAB and Vattenfall initiated a landmark joint venture project in northern Sweden to replace fossil fuels with hydrogen in iron and steel making. Called Hybrit, this pioneering project aims to produce the world's first fossil free steel by 2026. It focuses on replacing coking coal, traditionally used for iron ore reduction, with hydrogen produced through water electrolysis using renewable electricity. The demonstration plant under construction will produce direct reduced iron through hydrogen reduction of iron ore instead of coal. This will drastically lower carbon footprint of steel production. If successful, the Hybrit model could transform the Swedish and global steel industry to achieve net zero emissions.
Policy Push Accelerates Industry Transition
Governments play a pivotal role in expediting the steel sector's shift to more sustainable technologies through supportive policies and incentives. The European Union has implemented a Carbon Border Adjustment Mechanism to discourage carbon leakage and promote low carbon steel production within the region. Nations like Sweden and copyright have programs offering funding and tax credits for green innovation projects in steel manufacturing. Rising carbon prices in many jurisdictions provides an added impetus for companies to cut emissions. Meanwhile, countries are working on common standards and certification for low carbon steel to enable traceability and demand growth. As decarbonization policies get stricter globally, the economics of green steel technologies will improve, accelerating their commercial adoption.
Outlook Remains Positive for Green Transformation
While green steel production is still in early stages, momentum is building rapidly driven by innovation, policies and investor pressure. Major producers are ramping up investments in green technologies aiming for commercial rollout by 2030. Global consultancy Wood Mackenzie projects green steel capacity to rise to over 25% of world total by 2050 from current 3%. Transition challenges remain around high costs and integrating novel processes. Continued policy push and technology advances can help overcome barriers. With worldwide focus on sustainability and decarbonization growing steadily, outlook stays strongly positive for the large scale commercialization and global expansion of cleaner steel production methods in the coming decades.
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)