The path towards lowering carbon emissions across the steel value chain can be achieved through introducing efficiencies in current processes, use of ferrous scrap and development and adoption of breakthrough technologies, said World Steel Association director-general Edwin Basson.

"Around 75pc of the current steel capacity sits in countries that have targets to achieve carbon neutrality by 2050-60. Evaluations by the International Energy Agency show that the steel industry can turn to new technologies as a long-term path towards decarbonisation while operational improvements can bring short-terms changes," he said. Basson was speaking today at the Singapore Exchange's virtual Singapore International Ferrous Week (SIFW) 2021.

Basson highlighted three ways in which lower carbon goals can be achieved, including the efficient use of ferrous scrap. "Scrap generation in China will begin to grow fast towards the end of this decade and adjustments in production between primary steelmaking route and the secondary route will lower carbon emissions," he said.

China's main economic planning agency the NDRC has published a five-year plan that sets a target for ferrous scrap use of 320mn t by 2025. Chinese steel producers consumed 232mn t of ferrous scrap in 2020 out of supply of 250mn t, according to the China Association of Metalscrap Utilisation.

The primary steel production route applies to output through the blast furnace-basic oxygen furnace route using iron ore and metallurgical coal. The secondary route refers to steel output using ferrous scrap in an electric arc furnace as the main raw material.

Scrap availability will be a challenge to meet the global steel demand and as a result primary steel production will need to continue operating at current levels to meet demand, Basson said.

Besides use of hydrogen as a reducing agent, carbon capture, utilisation and storage (CCUS), use of biomass and renewable energy were other ways to pursue a low-carbon steel production, he added. "Low-carbon steel production will be expensive, and the cost of hydrogen will need to reduce substantially," he said. The use of hydrogen by itself is not sufficient to meet the goal of reducing carbon emissions in steel production, as hydrogen itself is not generated in a low-carbon or carbon-free route at the moment, he said, adding it will play a significant role in the future.

China is taking steps to drive the more widespread deployment of CCUS in key industrial sectors as part of its broader plans for carbon dioxide emissions to peak before 2030.

By Deepali Sharma

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