20 January 2025
Steel production, responsible for nearly 2 billion tonnes annually, is a key contributor to global carbon emissions, accounting for 7-9% of total CO2 emissions. The dominant blast furnace-basic oxygen furnace (BF-BOF) method emits 1.8-2.2 tonnes of CO2 per tonne of steel, while the electric arc furnace (EAF) method, using scrap steel, emits significantly less at 0.5-1.0 tonnes per tonne. Transitioning to more sustainable production methods is vital to meet climate goals, yet the sector faces challenges in reducing its carbon footprint.
Emerging technologies in steel production offer promising solutions. The EAF method, which relies on recycled scrap steel and renewable energy, is a leading approach for reducing emissions. Hydrogen-based steelmaking, where hydrogen replaces coal, produces minimal emissions and could revolutionise the industry. Carbon capture and storage (CCS) is another critical innovation, trapping CO2 emissions before they enter the atmosphere. Other strategies include improving energy efficiency through optimised processes and promoting a circular economy by designing steel products for reuse and recycling.
Patent activity in sustainable steel production, however, remains relatively low. The United States and Europe dominate patent filings, with minimal contributions from Asia despite China producing over half of the world’s steel. This lack of international innovation, particularly in major steel-producing regions, highlights the need for accelerated development in green technologies. Advancing these innovations and fostering global cooperation will be critical for the steel industry to reduce its environmental impact and support a sustainable future.
