The global steel industry plays a crucial role in the global economy but is also a significant contributor to carbon emissions. However, a recent study by the German non-profit climate think tank Agora Industry and the Wuppertal Institute for Climate, Environment, and Energy suggests that achieving net zero emissions in the steel industry by the early 2040s is feasible with prompt action.
This article explores the key findings of the study and emphasizes the need for collaborative efforts by governments, companies, and the adoption of new technologies.
Rapid Action for Net Zero Emissions:
According to the joint report, swift action is required to ensure that the global steel industry achieves net zero emissions earlier than the global goal of 2050.
This necessitates the implementation of regulatory frameworks and the scaling up of new technologies to reduce costs and drive decarbonization.
Currently, companies representing half of the global steel industry’s capacity have pledged to achieve net zero emissions by 2050.
Phasing out Coal and Embracing Green Technologies:
The study highlights the feasibility of phasing out coal in steelmaking by 2043 to 2045 without premature shutdowns of steel mills.
It emphasizes the importance of higher material utilization efficiency, increased use of recycled scraps in steelmaking, and the commercialization of hydrogen-based steel production as key strategies to achieve net zero emissions.
Pledges and Global Efforts:
Currently, companies representing half of the global steel industry’s capacity have pledged to achieve net zero emissions by 2050.
Meeting this commitment is crucial for containing global warming at 1.5 degrees Celsius by 2100 and avoiding severe consequences of climate change. Global carmakers, particularly those manufacturing in China, will be instrumental in driving the demand for green steel.
The cost of low-carbon hydrogen will significantly impact the competitiveness of steel mills.
Hydrogen and Low-Carbon Steel Production:
The report identifies the use of hydrogen in steelmaking as a key long-term pathway to achieve near-zero emissions in the industry.
However, the current global capacity for low-carbon hydrogen production is limited, requiring the retraining of engineers and construction workers to build direct-reduction iron plants and facilitating the entry of new players. The cost of low-carbon hydrogen will significantly impact the competitiveness of steel mills.
Abatement Technologies and Blast Furnace Modification:
To reduce emissions intensity in primary steel production, abatement technologies such as hydrogen injection, gas recycling, carbon capture, and biomass alternatives should be adopted.
Given China’s reliance on blast furnaces, special attention must be given to developing emission abatement technologies for iron ore and coal-to-steel plants.
Conclusion:
The global steel industry has the potential to achieve net zero emissions in the early 2040s with rapid action and collaboration among governments, companies, and the adoption of innovative technologies.
By phasing out coal, embracing green technologies, and focusing on hydrogen-based steel production, the industry can play a vital role in the global fight against climate change while ensuring its own sustainability and competitiveness.
