Green Steel Explained: The Future of Low-Carbon Construction

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Drivers for Transition to Green Steelmaking

There are several factors driving the transition to more sustainable steelmaking practices that produce fewer greenhouse gas emissions. Population growth and rapid urbanization are resulting in increased demand for steel which, if not addressed, will exacerbate the industry's already large carbon footprint. Steel currently accounts for around 8% of direct global CO2 emissions from industrial processes. At the same time, commitments to reduce emissions and limit global warming under the Paris Agreement are putting pressure on heavy industries like steel to decarbonize. Governments are introducing climate policies and carbon pricing that make green steel production more economically viable compared to traditional methods. Consumer and investor demand for sustainably produced materials is another driver as companies aim to meet environmental, social, and governance standards. The steel industry recognizes it must adapt to remain competitive in a low-carbon economy.

Emerging Green Steel Production Technologies

Several technologies are being developed and deployed that can significantly reduce steelmaking emissions. Hydrogen direct reduction uses hydrogen instead of Green Steel monoxide to remove oxygen from iron ore, resulting in elemental iron and water vapor rather than carbon dioxide. When combined with electric arc furnace steelmaking, the process avoids carbon emissions entirely. Hydrogen can also be injected into existing blast furnaces to partially replace coking coal. Emerging technologies like molten oxide electrolysis directly produce liquid iron and oxygen from iron ore using renewable electricity, avoiding the need for coking coal altogether. Carbon capture, utilization and storage technologies aim to trap carbon dioxide emissions from blast furnaces before they enter the atmosphere. The captured carbon can potentially be utilized in products like cement or stored underground. Scrapping and recycling scrap steel avoids the high emissions from processing iron ore, with recycling rates able to reach 90% or more with efforts to improve collection logistics and scrap sorting.

 

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