Why steelmaking coal is critical for a renewablesfocused future Dan van der Westhuizen, Chief Executive Officer Anglo American Australia
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he global transition towards renewable energy sources like solar, wind and hydroelectric power is creating massive demand for critical minerals like copper, lithium, nickel and cobalt. But one essential material is often overlooked.
While solar, wind and batteries grab headlines, it is steel that underpins these technologies and steelmaking coal is a vital ingredient in that process. Steel is widely used in infrastructure for renewable energy, as well as the facilities necessary to process new critical minerals. Copper is essential for conducting electricity in all its forms, while lithium and cobalt are crucial for many battery technologies that store energy from renewables or power battery-electric cars. But steel forms the structures that support solar panels and wind turbines. Without steel, these technologies fall over – literally. Upgrading power grids to handle and connect to renewables also requires huge volumes of steel for transmission towers.
Photo: Anglo American
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The global energy transition is being driven by a need to reduce carbon emissions and mitigate climate change. Australia has made a commitment to be ‘net zero’ by 2050, and
just like us, many developed countries have set ambitious targets to increase the share of renewables in their energy mix over the coming decades. The European Union, for example, aims to source 32% of its energy from renewables by 2030, while the United States is targeting 30% by 2030. At Anglo American, we have committed to carbonneutral operations by 2040. Steel is a fundamental enabler across the entire renewables supply chain. For steelmakers, it’s important to note metallurgical or steelmaking coal remains an essential input into the steel manufacturing process, even with the energy transition. Steel cannot currently be produced without carbon from coal at the commercial scale that the world demands. There is no other material that can reliably and economically replace the unique role of metallurgical coal in the steelmaking process today. While processes using hydrogen are being developed and supported by companies, including Anglo American and large steelmaking customers, they remain many years away from large-scale commercial viability. Realistically, a significant portion of global steel manufacturing will continue to rely on blast furnace technologies using high-quality steelmaking coal for many decades to come. Even if we ignore the global energy transition, steelmaking coal demand will remain strong. The World Steel Association says 1.95 billion tonnes of steel were produced in 2021, and this number is projected to grow steadily
