Technological overview of the green transition of the steel industry and its techno-economic implications

Abstract

The purpose of the Paris Agreement is to coordinate the global response to climate change caused by global warming. Global greenhouse gas emissions must fall by 33–41 Gt CO2e (Gigatons of CO2 equivalent) by 2030 and by 8–20 Gt CO2e by 2050 to meet the Paris Agreement’s temperature target. Steel is an essential material in modern life. Although the iron and steel industry is responsible for more than 7% of the world’s greenhouse gas emissions. A number of low- or zero-carbon steelmaking projects are planned or underway to reduce carbon footprints and produce green steel. However, achieving drastic reductions in CO2 emissions requires a new, transformative approach to iron and steel production. Globally, the largest share of steel greenhouse gas emissions from the iron and steel industry comes from integrated processes, where coal, coke and gas is used to reduce iron ore to produce pig iron. The other signifi cant proportion of the emission comes from the power generation required to operate electric arc furnaces (EAF) and rolling mills. There are several approaches to achieving signifi cant reductions in carbon dioxide emissions in the steel industry. The main approaches can be grouped as circular economy, technologies for CO2 reduction and avoidance of direct carbon dioxide emissions. The green transition of the iron and steel industry, on the other hand, has many technical and economic aspects: technology, infrastructure, capital, operating costs, demand and policies. The transition is a global challenge that requires a global response and will require collaboration between countries, public and private stakeholders.