Green Steel: Paving the Way for Sustainable Industry
The steel industry is one of the largest contributors to global CO₂ emissions, accounting for nearly 7–9% of total emissions. Traditional steel production relies heavily on coal in blast furnaces, making decarbonization a major challenge. Green steel, produced using low-carbon or carbon-free methods, is emerging as a key solution to reduce the environmental impact of this essential material.
Green steel can be produced using several innovative approaches. One of the most promising is hydrogen-based direct reduction, where hydrogen replaces coal as the reducing agent, emitting water vapor instead of CO₂. Another approach is electric arc furnace (EAF) steelmaking, which uses renewable electricity to melt recycled scrap steel, significantly reducing emissions compared to conventional methods. These technologies not only lower carbon footprints but also help companies align with global climate targets and regulatory requirements.
The market for green steel is growing rapidly, driven by increasing demand from sectors such as automotive, construction, and infrastructure, where sustainability is becoming a purchasing criterion. Leading steel producers are investing in green production plants, while governments offer incentives and subsidies to accelerate adoption.
Despite its potential, challenges remain. Production costs for green steel are currently higher than conventional steel, and scaling up hydrogen production and renewable electricity supply requires substantial investment. Additionally, the supply chain for recycled scrap steel and low-carbon hydrogen is still developing.
Nevertheless, green steel represents a transformative opportunity for the steel industry. By combining technological innovation, supportive policies, and market demand for sustainable products, green steel can play a pivotal role in the global transition toward a low-carbon economy.