The expansion of the steel industry plays a significant role in the global economy due to the diverse applications of steel as a material. However, the conventional process of steel production is extremely energy-intensive and contributes to excessive levels of greenhouse gas emissions. According to studies, the market is responsible for almost 7-9% of global CO2 emissions. With the increasing demand for reducing carbon footprint across steel businesses and the rising need for mitigating climate change, steel manufacturers have started adopting alternative ways for steel production.
The rise of green steel production
Traditionally, steel was mainly manufactured using blast furnace technology, smelting iron ore with coke. This process reduces iron ore to pig iron with high energy input and then it is further processed into steel. However, green steel is primarily produced through an electric steelmaking method in the electric arc furnace, where scrap is melted using electrical energy and graphite electrodes. This innovative procedure of steel production utilizes electricity from renewable sources or nuclear power, significantly reducing CO2 emissions to the atmosphere. Many leading steel manufacturing plants are also planning to incorporate hydrogen-based iron ore reduction processes instead of coke, enabling emission-free steel production.
The role of hydrogen in sustainable steelmaking
The production of green steel offers significant ecological benefits which include reduction of greenhouse gas emissions, reduced energy consumption, and conservation of natural resources. The conventional steelmaking process involves fossil fuels that result in CO2 emissions. This is mainly because the process uses coal and coke to remove oxygen from the iron ore. However, the introduction of hydrogen as a reduction agent has helped remove coal completely from the process. Moreover, the only by-product generated from this process is water instead of carbon dioxide. Then water is further used to produce more hydrogen, thus creating a closed cycle.
How are electrolysis and furnace technologies transforming the green steel industry?
In the past few years, the steel industry has undergone a notable transformation to minimize its carbon footprint. Electrolysis has emerged as a key process that includes the passing of electric current through an electrolyte to boost non-spontaneous chemical reactions. This technology is beneficial for producing iron, aluminum, green hydrogen, and many other materials. For instance, Molten Oxide Electrolysis of Boston Metal, a leading technology company, is a high-scoring electrolysis solution that produces pure molten iron from low-grade ore using electricity. This process eliminates the scope of emissions attributed to steel production and can be applied to any iron ore grade.
Moreover, the advent of advanced furnace technology has brought new opportunities to the green steel market. According to Allied Market Research, the industry is predicted to rise at a CAGR of 113.6% from 2023 to 2032. These advancements involve various systems, technologies, and methods connected to the construction, design, and operation of furnaces. For instance, the adoption of electric arc furnaces has played an important role in decarbonizing the steel industry. Furthermore, Coolbrook, a leading tech company, has offered the highest-ranked furnace technology. The RotoDynamic technology of the firm is designed to generate a high-temperature process that heats up to 1,700 degrees Celsius. It is powered by electrification, eliminating the need for burning fossil fuels to create high temperatures.
Tata Steel and National Grid join hands for sustainable steelmaking in South Wales
In May 2024, Tata Steel, an Indian multinational steel-making company partnered with National Grid Plc., a British multinational electricity and gas utility company. With this agreement, Tata Steel aimed to develop the power infrastructure required to transform its Port Talbot site in South Wales into a green steel plant. This partnership has allowed National Grid to create new power systems to support the development of Tata Steel’s planned electric arc furnace of 3.2 million by the end of 2027. Rajesh Nair, the CEO of Tata Steel UK announced that this initiative is expected to replace the company’s aging and carbon-intensive blast furnaces with an innovative electric arc furnace capable of producing demanding steel products among customers globally. This significant transition in electric furnace technology is a notable move toward sustainable production of steel, providing a greener alternative to conventional coal-fired furnaces. Moreover, Alan Mak, the industry minister of steel, said that this agreement has showcased a positive step toward securing the future of steelmaking in South Wales and the UK.
Acquisition of H2 Green Steel by Schaeffler to boost the CO2 reduction efforts
In September 2023, Schaeffler, the leading motion technology company announced its acquisition of H2 Green Steel, a fully integrated and circular plant in Boden. Through this agreement, the companies envision investing 65 million euros to promote the development of new steel products such as green e-steel for electromobility. Moreover, the enterprises have also planned to develop new applications for the use of eco-friendly rolling bearing solutions in steel production. With this move, the firms aimed to improve the efficiency of production through the use of high-quality components and integrated condition monitoring solutions. Klaus Rosenfeld, the chief executive officer of Schaeffler AG, said that with this acquisition, the companies have planned to work together more closely, contributing to the global transformation of the steel industry and the reduction of CO2 emissions.
The essence
The rise of green steel production has brought significant transformation in the steel industry by utilizing advanced technologies and recycling processes. Moreover, supportive government investments in green steel manufacturing are expected to create wide growth opportunities for the landscape in the years to come.
Author’s Bio: Although belonging to an engineering stream, Rosy had a knack for writing throughout her student life. Her keen interest in creative compositions drove her to take up content writing professionally after graduation. For the last few years, she has been delivering impactful content, engaging and delighting readers, along with grabbing their attention.
✍ **𝑨𝒓𝒕𝒊𝒄𝒍𝒆 𝒘𝒓𝒊𝒕𝒆𝒓: Rosy Behera
