Green Steel is the Future but Change Needs to Start Now

Green steel is hotter than ever. But while regulatory support and increased availability of clean energy will be needed to speed up the transition to carbon-neutral steel production, changes can be made to reduce climate impact – even in the short term. So says Asa Ekdahl, Head of Environment and Climate Change at World Steel Association.

"For a low-carbon future to be truly viable, policy changes will be needed", Ekdahl says. “The steel industry needs to make clear to policymakers what their future carbon-free electricity needs will look like and what the benefits of increased electrification will be.” These benefits will largely arise from replacing fossil fuels with carbon-free electricity, she says.

"For a low-carbon future to be truly viable, policy changes will be needed", Ekdahl says. “The steel industry needs to make clear to policymakers what their future carbon-free electricity needs will look like and what the benefits of increased electrification will be.” These benefits will largely arise from replacing fossil fuels with carbon-free electricity, she says.

In the meantime, however, the grid in most countries is still not able to provide low-carbon electricity at the scale and cost required to support far-reaching changes. For example, the Swedish HYBRIT (Hydrogen Breakthrough Ironmaking Technology) project – an initiative through which SSAB, LKAB and Vattenfall are seeking to replace coal with fossil-free hydrogen in order to develop the world’s first fossil-free ore-based steelmaking technology – is expected to consume some 15 TWh of fossil-free electricity on its own.

Great potential in electrifying supporting processes

Without sufficient carbon-free electricity to convert the entire industry to green steel, sustainable steps can be taken in the meantime, Ekdahl says. For example, steelmakers may opt to use natural gas for direct reduced iron (DRI) production as an interim solution until hydrogen becomes more affordable. Another option is to start electrifying supporting processes.