WHAT DOES THE FUTURE HOLD FOR GREEN STEEL?
Innovation And Clean Energy Transform The Steel Industry Worldwide
Steel is the backbone of modern industry. Every year over two million tonnes of iron alloy are produced and steel manufacturing directly employs more than six million people. (Source: www.iberdrola.com)
The demand will not slow down any time soon. The only problem is that steel production releases tonnes of carbon dioxide with significant environmental impact. 8% of worldwide CO2 emissions caused by humans are from steel production, more than any other industry. Coal-fired blast furnaces account for close to 75% of steel manufacturing.
Recycling Steel Is Part Of The Solution
Steel can be infinitely recycled in an entirely electric process that produces few emissions. Making steel recycling more efficient and developing ways to increase recycling rates is one way to reduce CO2 emissions, as well as utilise materials already within the system. The steel recycling industry already accounts for 26% of global demand, and efforts are being made to increase this percentage.
But recycling alone is not enough. Future forecasts demonstrate that even with recycling, steel production will still require at least half of its steel to come from iron ore. (Source: www.iberdrola.com)
The World Needs Energy-Sustainable Steel
The global steel industry is on the verge of a groundbreaking period of development, steered by green steel initiatives. Large green energy companies like Iberdrola are already working on projects that minimise green transition impacts on major steel companies. This could change the future of how we build things.
What Is Green Steel And How Is It Made?
Green steel can be made smelting ore in electric arc furnaces powered by renewable energy—that is what makes it “green”, as opposed to traditional smelting which uses coal. It is estimated that 31% of current steelmaking capacity uses electric arc furnaces, but that figure is likely to increase as the technology improves and becomes more economical.
Another proven solution is “green hydrogen” which requires renewable electricity and water to create electrolysis. “Blue hydrogen” is another option but this is more complicated and doesn’t necessarily eliminate the production of greenhouse gases. It also requires natural gas and underground carbon capture, utilisation and storage (CCUS) technology for it to be “low carbon”.
Costs, Challenges And Benefits
The benefits of green steel are clear, but the industry must overcome several significant challenges to implement it.
According to Mitsubishi Heavy Industries Group (MHI), “The real roadblock for green steel is simply the availability of low-carbon hydrogen… Scaling up this technology will require massive amounts of green or blue hydrogen.” (Source: https://www.weforum.org/agenda/2022/07/green-steel-emissions-net-zero/)
The green steel revolution needs the climate-friendly electricity, hydrogen, and steel manufacturing sectors to work together… plus billions of dollars in funding. But as the technology becomes more efficient, the benefits will begin to outweigh the costs.
The Green Steel Era Has Begun
The future looks bright for green steel. It is poised to revolutionise the steel industry worldwide, make it sustainable and improve the quality of the environment globally at the same time.