As nations worldwide strive to develop and enhance urban areas and infrastructure, their demand for steel remains insatiable. As the most widely used metal globally, steel finds its way into numerous facets of daily life, from vehicles like cars, planes, and ships, to household appliances such as washing machines.

However, amid efforts by governments and industries to curtail carbon emissions in pursuit of ambitious net-zero targets, steel production is under scrutiny. Approximately 75% of steel is currently produced in coal-fired blast furnaces, contributing significantly to carbon dioxide emissions.

The energy-intensive process of heating furnaces to temperatures exceeding 1,000°C further exacerbates the environmental impact. In total, steel production is responsible for about 7-9% of global emissions.

Addressing these emissions from heavy industries necessitates adopting sustainable practices, such as the production of green steel. It’s evident that mitigating one of the largest industrial sources of CO2 pollution is essential in combating climate change. To align with global climate objectives, the International Energy Agency (IEA) advocates for a 50% reduction in steel emissions by 2050, with continued declines thereafter.

Green steel emerges as a compelling solution to achieve these ambitious targets.

What is Green Steel?

Green steel refers to steel that is produced with significantly lower carbon emissions compared to traditional steelmaking processes. Conventional methods for manufacturing steel involve the use of coal and fossil fuels, which release large amounts of carbon dioxide into the atmosphere during the ironmaking and steelmaking stages. Green steel, on the other hand, aims to minimize or eliminate these emissions by employing alternative production methods and energy sources that have a lower environmental impact.

One solution gaining attention is the use of Green Hydrogen. Unlike traditional fossil fuels, hydrogen emits only water when burned, making it environmentally friendly. When hydrogen is produced through electrolysis using water and renewable electricity, it generates no CO₂ emissions.

Why Green Steel?

Green steel represents a vital shift towards a more sustainable future for the steel industry and the environment. The importance of green steel cannot be overstated, as it addresses several critical issues:

1. Environmental Sustainability: Traditional steelmaking processes have a significant environmental footprint, contributing to air pollution, greenhouse gas emissions, and depletion of natural resources. Green steel production methods drastically reduce these negative impacts by minimizing carbon emissions, increasing energy efficiency, and promoting the use of renewable energy sources.
2. Mitigating Climate Change: By adopting green steel production methods, the industry can significantly lower its carbon footprint and actively contribute to global efforts to combat climate change. This reduction in emissions not only helps meet national and international climate targets but also mitigates the long-term effects of climate change on the environment and society.
3. Meeting Consumer Demand: Consumers and businesses are increasingly conscious of their environmental impact and are actively seeking products with lower carbon footprints. Green steel aligns with this growing demand for sustainable products across various industries, such as construction, automotive, and manufacturing.
4. Compliance with Regulations: Many countries have implemented or are in the process of implementing stricter environmental regulations, carbon pricing mechanisms, and emissions trading schemes to incentivize industries to reduce their greenhouse gas emissions. Green steel production enables steel companies to comply with these regulations, avoid potential penalties or costs associated with high emissions, and demonstrate their commitment to environmental responsibility.
5. Investor Preferences: Investors are increasingly considering environmental, social, and governance (ESG) factors when making investment decisions. Steel companies that prioritize green steel production may be more attractive to investors seeking sustainable and responsible investment opportunities.

How Hydrogen Can Be Used to Produce Green Steel

One promising approach to producing green steel involves the use of Green Hydrogen as a reducing agent in the ironmaking process. In this process, iron ore is reduced by hydrogen instead of coal, resulting in water vapour as the primary byproduct, which has a much lower environmental impact compared to carbon dioxide emissions.

The process of using green hydrogen to produce green steel typically involves the following steps:

1. Green Hydrogen Production: Green hydrogen is produced through electrolysis, which involves splitting water molecules into hydrogen and oxygen using electricity generated from renewable energy sources like solar, wind, or hydropower. This ensures that the hydrogen itself is produced with minimal carbon emissions.
2. Direct Reduction of Iron Ore: The green hydrogen is then used to reduce iron ore in a direct reduction furnace or shaft furnace. In this process, the iron ore reacts with the hydrogen gas, resulting in the formation of sponge iron or direct reduced iron (DRI).
3. Steelmaking: The DRI produced in the direct reduction process is then combined with scrap steel and other required materials in an electric arc furnace (EAF) or a basic oxygen furnace (BOF) to produce green steel. The steel produced through this method has a significantly lower carbon footprint compared to traditional steelmaking processes that rely on coal-based blast furnaces.

While the use of green hydrogen for steelmaking is still in the early stages of development and commercialization, several steel companies and research organizations are actively exploring and investing in this technology. Major steelmakers, such as SSAB, ArcelorMittal, and Thyssenkrupp, have announced pilot projects and plans to transition towards green steel production using hydrogen as a reducing agent.