Steel in Energy Transition Projects

Green Steel: Is It Economically Viable Now? 🌱💰 ✳ This July 2024 report from Global Efficiency Intelligence, TransitionAsia, and Solutions for Our Climate dives deep into the economics of green steel production, comparing the cost of green H2-DRI (Hydrogen-Direct Reduced Iron) with traditional steelmaking methods. Key Findings: 1️⃣ Green Premium Exists: Producing steel using green hydrogen is currently more expensive than traditional methods, resulting in a "green premium." 2️⃣ Premium Varies by Region: The size of the premium differs across countries, influenced by hydrogen costs, carbon pricing mechanisms, and existing steelmaking costs. 3️⃣ Final Product Impact is Minimal: While the per-ton cost of green steel is higher, the premium's impact on the final cost of products like cars and buildings is negligible (<1%). 4️⃣ Shipbuilding Shows Potential: While the green premium for shipbuilding is more significant (~10%), the report highlights the potential for future cost reductions and the sector's relatively small share of global steel demand. Policy & Market Drivers for a Green Steel Future: 1️⃣ Lowering Green Hydrogen Costs: Governments can accelerate adoption through policies like tax incentives, grants, R&D funding, and investments in renewable energy infrastructure. 2️⃣ Carbon Pricing: A robust carbon price can incentivize the transition to less carbon-intensive steelmaking. 3️⃣ Green Public Procurement: Prioritizing green steel in public projects can create market demand and mitigate financial risks for producers. 4️⃣ Industry Collaboration: Steel companies should form partnerships to secure green hydrogen supply and engage in large-scale pilot projects. 5️⃣ End-User Engagement: Automotive, construction, and shipbuilding companies can incorporate green steel into procurement strategies, driving demand and potentially sharing the cost premium. This report provides crucial insights into the economic feasibility of green steel production. It emphasizes the need for collaboration across the value chain and highlights the important role of supportive policies and market mechanisms to drive adoption and unlock a truly sustainable steel industry. #GreenSteel #H2DRI #Steelmaking #Decarbonization #ClimateAction #RenewableEnergy #CarbonPricing

Take a moment to watch this video — a historic glimpse of workers drawing and quenching #coke from a coke oven, a process that’s fuelled steelmaking for over a century. The stunning lack of PPE aside, it’s a powerful reminder of the ingenuity that built our modern world — and the legacy that we now need to transform. Today, metallurgical coal and coke remain vital to steel, with demand holding steady in the near term, especially as India and Southeast Asia drive growth. Yet, on a net-zero scenario, emissions from steel will have to come down by around 90% in 2050 — clearly incompatible with today's trajectory for metallurgical coal. It’s not a quick switch — cost and scale are tough nuts to crack — but the shift is inevitable. Getting there will require three elements: a massive scale-up of new technologies like hydrogen-based direct-reduced iron (#DRI), retrofitting existing assets with carbon capture, and pushing #electrification as well as material and process efficiency to the limit. Achieving this transformation isn’t just about technical breakthroughs— industry will need stable policy frameworks, robust financing mechanisms, and major infrastructure investments (from clean power grids to hydrogen pipelines) to enable steelmakers worldwide to move from pilot projects to full-scale deployment.

Germany has just unveiled one of the most transformative industrial projects in modern history — a steel plant that replaces coal entirely with green hydrogen. Built by Salzgitter AG, this facility eliminates the CO₂-heavy blast furnace process and uses hydrogen-powered direct reduction instead, cutting emissions by more than 95%. For an industry responsible for nearly 8% of global carbon pollution, this marks a massive breakthrough that proves heavy manufacturing can be clean, efficient, and future-ready. What makes this project even more significant is its scalability. If adopted globally, hydrogen-based steelmaking could dramatically lower worldwide emissions, reshape supply chains, and set a new standard for climate-friendly industry. Germany’s success sends a clear message: sustainable steel production is no longer theoretical — it’s here, operating, and ready to inspire the next wave of green industrial revolution. #GreenEnergy #HydrogenRevolution #CleanIndustry #GermanyInnovation #SustainableFuture

Thyssenkrupp’s recent warning about its €3 billion green steel plant in Duisburg raises serious questions about the practical implementation of industrial #decarbonization in Europe. CEO Miguel Lopez’s stark admission that this flagship project is “operating beyond the limits of economic viability” should be a wake-up call for industry leaders and policymakers alike. The world’s most modern steel plant risks becoming a stranded asset because of a fundamental oversight: ensuring adequate hydrogen infrastructure BEFORE committing billions to construction. This situation highlights three critical failures: 1️⃣ Planning disconnect: How did Thyssenkrupp commit to a €3B investment without securing viable hydrogen supply chains first? The project requires 104,000 tonnes of hydrogen by 2028, scaling to 151,000 tonnes annually—volumes that Germany’s current infrastructure cannot support at competitive prices. 2️⃣ Public funding questions: German taxpayers provided €2B toward this project. Was this investment made with realistic assessments of hydrogen availability and cost? Or are we witnessing another case of green ambitions racing ahead of practical realities? 3️⃣ Industry transformation challenges: Thyssenkrupp’s predicament reflects a broader issue in Europe’s industrial decarbonization strategy—ambitious targets without the necessary infrastructure to support them. Don’t mistake my criticism for opposition to #greensteel. We absolutely need this transition. But successful decarbonization requires honest assessment of infrastructure needs, technological readiness, and economic viability. For industry leaders watching this unfold: Are your green transition plans built on realistic hydrogen availability projections? Or are you risking similar economic pitfalls? For policymakers: Infrastructure must come first. Hydrogen pipelines, renewable energy capacity, and competitive energy pricing are prerequisites for—not consequences of—industrial green transitions. This isn’t just Thyssenkrupp’s problem. It’s a warning for Europe’s entire industrial decarbonization strategy. #GreenSteel #IndustrialDecarbonization #HydrogenEconomy #EnergyTransition #IndustrialPolicy https://lnkd.in/dEb8V_Xp

The steel sector sits at the heart of the global economy. It also sits at the center of one of the hardest transitions we have to get right. I’m pleased to share our latest paper from Observer Research Foundation America: “Greening Steel in a Fragmented World: Aligning Markets, Technology, and Finance.” 🔗 https://lnkd.in/eMiytqtU This work comes at a moment when ambition is high in many countries, but delivery is struggling to keep pace. Here are five key insights from the paper: 1. Fragmentation is now the defining challenge The global steel transition is not just a technology problem. It is being shaped by fragmented markets, diverging standards, and competing policy regimes. Without alignment, scale will remain elusive. 2. Announcements are not the same as execution Hundreds of low-emissions steel projects have been announced globally, but very few are reaching final investment decisions. The bottleneck is not vision, it is bankability. 3. Trade is becoming a decisive force Mechanisms like carbon border measures, evolving tariffs, and industrial policies are reshaping competitiveness. Steel is no longer just produced, it is increasingly “regulated into markets.” 4. Demand creation is the missing link Supply-side innovation alone will not deliver. Public procurement, green standards, and credible offtake agreements are essential to create real markets for low-emissions steel. 5. Finance is both the ultimate unlock and the key constraint The cost of capital gap between advanced and emerging economies is a structural barrier. Without addressing this, the transition risks becoming geographically uneven and economically inefficient. The bottom line is simple: We don’t have a shortage of ideas or technologies. We have a coordination problem. Solving that means aligning markets, technology, and finance across borders, not within them. Caroline Vecci Arkalji Telmen Altanshagai #Steel #EnergyTransition #IndustrialPolicy #CleanEnergy #Trade #Manufacturing #Competitiveness

The green steel roadmap has a problem nobody is solving honestly. Green steel requires high-temperature heat. Consistently. Continuously. At scale. Electrolysers produce hydrogen. Hydrogen can produce heat. But the economics only work if the electricity is cheap, continuous, and carbon-free — and that combination is not available from the grid at the scale steel production requires. For a steelmaker running 24/7 at 900–1,200°C, the energy problem isn't about emissions accounting. It's about finding a physically reliable source of clean, high-temperature thermal energy that doesn't depend on wind, sun, or grid capacity. That's the gap the industry has been working around rather than solving. → Carbon offsets don't solve it → Renewable PPAs don't solve it at the right temperature → Blue hydrogen shifts the Scope 1 problem, not eliminates it The question serious operators in steel and metals should be asking right now is: what on-site clean heat technology actually delivers at this temperature and scale — and what does the commercial model look like? Happy to have that conversation. #GreenSteel #ProcessHeat #IndustrialDecarbonisation #EmeraldHorizon #NetZero #SteelIndustry #HardToAbate #EnergyTransition

Two New Reports: Net-Zero Roadmaps for the Steel Industry in Indonesia and Vietnam I’m excited to share that Global Efficiency Intelligence, in collaboration with the ASEAN Centre for Energy, has published two in-depth roadmaps for decarbonizing the steel industry in Indonesia and Vietnam. Download Vietnam's steel roadmap from here: https://lnkd.in/gKRQPXRq Download Indonesia's steel roadmap from here: https://lnkd.in/gDnvWE34 These roadmaps analyze the current state of steel production, energy use, and emissions, and model multiple decarbonization pathways up to 2060, combining: ⚡ Energy efficiency & electrification 📉 Material efficiency & demand management 🔄 Fuel switching & cleaner electricity 🔧 Technology shifts to low-carbon steelmaking (scrap-EAF, green H₂-DRI, etc.) 🌍 CCUS 🔑 Key insights: - Technology shifts to low-carbon steelmaking, such as scrap-EAF and green H₂-DRI, have the largest contribution to deep decarbonization. - Energy efficiency, electrification, demand management, material efficiency, fuel switching, and cleaner electricity also play significant roles. - Green H₂-DRI will be important but depends on major hydrogen cost reductions and infrastructure investments, reaching only about 10% of domestic steel production by 2060. - While green H₂-DRI steel may have a high cost premium per ton of steel, its impact on end-product costs (e.g. cars, buildings) is minimal. - Green iron imports will complement domestic decarbonization but contribute less than 15% of total emissions reductions by 2060. - CCS has the smallest role in the net-zero pathway for the steel industry in Vietnam and Indonesia. These reports provide detailed policy recommendations and near- and medium-term action plans for governments, the steel industry, and other stakeholders across the five decarbonization pillars. 📄 Download the full reports to explore the detailed analysis and results. #steel #decarbonization #Vietnam #Indonesia #greensteel

𝗦𝗰𝗮𝗹𝗶𝗻𝗴 𝗨𝗽 𝗦𝘁𝗲𝗲𝗹 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻 - 𝗜𝘁'𝘀 𝗮 𝗣𝗼𝗹𝗶𝗰𝘆 𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲 The steel industry is racing to decarbonize, relying heavily on breakthrough technologies. But these technologies need more than just funding. Here's what's needed to scale them up: 🔑𝗧𝗮𝗿𝗴𝗲𝘁𝗲𝗱 𝗧𝗲𝗰𝗵 𝗦𝘂𝗽𝗽𝗼𝗿𝘁: Policies must support the development of specific technologies, such as carbon capture, utilization, and storage (CCUS) for blast furnaces hydrogen-based steelmaking (H2-DRI-EAF), and iron oxide electrolysis. 🔑𝗩𝗮𝗹𝘂𝗲 𝗖𝗵𝗮𝗶𝗻 𝗖𝗼𝗼𝗿𝗱𝗶𝗻𝗮𝘁𝗶𝗼𝗻: Scaling up requires access to clean energy, hydrogen, carbon storage, and high-quality scrap. Governments need to facilitate collaboration between industry and energy providers to ensure all the necessary infrastructure is in place. 🔑𝗕𝗼𝗼𝘀𝘁𝗶𝗻𝗴 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗗𝗲𝗺𝗮𝗻𝗱: We need policy support to the development and adoption of low-carbon technologies. This involves funding innovation and creating market demand for greener steel through incentives like green public procurement and labeling. A successful transition to a low-carbon steel industry requires carefully managing the closure of old plants to avoid market disruption. Additionally, 𝗽𝗼𝗹𝗶𝗰𝗶𝗲𝘀 𝗺𝘂𝘀𝘁 𝗯𝗲 𝗳𝗹𝗲𝘅𝗶𝗯𝗹𝗲 𝗮𝗻𝗱 𝗮𝗱𝗮𝗽𝘁 𝘁𝗼 𝗿𝗮𝗽𝗶𝗱 𝘁𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝗶𝗰𝗮𝗹 𝗮𝗱𝘃𝗮𝗻𝗰𝗲𝗺𝗲𝗻𝘁𝘀 𝗮𝗻𝗱 𝗺𝗮𝗿𝗸𝗲𝘁 𝗰𝗵𝗮𝗻𝗴𝗲𝘀, which is an area where current policies are lacking. How can policymakers ensure they're creating the right conditions for rapid steel innovation? What policies would you prioritize? Reference: OECD - OCDE Report - https://lnkd.in/gHYAvWzE #SteelDecarbonization #GreenSteel #InnovationPolicy #NetZero

Forging a Greener Future. Germany has revolutionized heavy industry by opening the world's first steel plant that produces zero emissions. This pioneering facility, developed by Salzgitter AG, uses green hydrogen instead of coal, marking a historic pivot for manufacturing. The new plant abandons traditional carbon-heavy blast furnaces for a clean hydrogen-based technology. This advanced process slashes CO₂ emissions by over 95%, enabling the large-scale production of eco-friendly steel. This development positions Germany as a leader in sustainable industry and provides a global model for clean production. It signals a fundamental shift in how we can build a world where manufacturing no longer harms the environment. How can other nations accelerate their adoption of this green technology?

This new report, developed by the Green Hydrogen Catapult and RMI highlights how green iron corridors—producing iron with green hydrogen in renewable-rich areas and shipping it to traditional steelmaking regions—could revolutionize and transform the steel industry.  Restructuring half of primary steelmaking to use green iron could save > $25 billion annually across the 10 highest priority importers at today's prices, which translates to a savings of $80-125 per ton of steel. Further, fast-tracking corridor opportunities between existing and emerging iron exporter regions to the EU and Asia could abate an annual ~30 million tons of CO2 by 2030.   This approach promises cost savings, efficiency, and economic benefits for both importing and exporting countries, and will help the steel sector move away from coal and toward near-zero-emissions steel. Explore the full report here: https://lnkd.in/gU8gfuvg   #Decarbonization #EmissionsReduction #Steel #Iron #Hydrogen #GreenHydrogen