Three technologies critical for green steel Steel is one of the world’s most vital engineering and construction materials for buildings, cars, trains, machinery, and more.
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nnual steel demand has tripled over the past 50 years and is expected to reach ~1.8 Megatonnes (Mt) in 2023. However, iron ore mining and steel production processes generate high industrial carbon emissions. For example 70% of global steel operations burn coal to feed blast furnaces, and steel plants emit up to 2.4 tons of CO2 for each ton of steel they produce. Also, the steel industry alone is responsible for 9% of global emissions. For these reasons, the industry faces pressure to decarbonize steel manufacturing processes. For example, steel consumers, like the automobile industry, have set aggressive Scope 3 emission targets (carbon emissions not produced by the company but associated with their supply/value chain). Therefore, to remain competitive and drive profitability, steel plants must respond to customers’ expectations to produce “green steel,” a low-emissions version of the traditional steel product.
Technological breakthroughs now allow green steel to be a reality Fortunately, technological innovations make it possible for the industry to accelerate the pace of steel decarbonization. Electrification of the steel industry, including the migration to Electric Arc Furnaces (EAF) and Direct Reduced Iron (DRI) processes, reduces CO2 emissions, enabling a transition to electricity and hydrogen. Plants that produce green steel, for which clients are now willing to pay a premium, use hydrogen in the DRI processes, Electric Arc Furnaces to melt steel, and power their operations using renewable energies. Steel companies in Western Europe are investing billions in enabling their plants to produce green steel. As steel companies worldwide upgrade their facilities, the “process OEMs” (pOEMs) design these facilities, the technology manufacturers who equip them, and their end users play a critical role in providing low-carbon solutions.
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Skillings.net | November 2023
For example, Tenova, a worldwide partner for sustainable, innovative, and reliable solutions in the metals and the mining industries that works closely with Schneider Electric™ is leading the way in designing Direct Reduction systems fueled with hydrogen that can accommodate mixed fuel feeder stocks, perform carbon capture, and produce high-grade iron pellets feeding downstream electrical furnaces. Their technology enables more from 50% to 90% reduction in CO2 emissions compared to traditional approaches.
Electrification and digitization of operations lower steel carbon emissions With new-generation steel plants running mainly on electricity, either through electric furnaces or using electricity for hydrogen manufacturing, electrical energy now represents 30-40% of production costs. Therefore, to reduce OpEx, corporate stakeholders must ensure the efficient use of elec-
