U.S. Government Explores Impact Of Adoption Of Low-Carbon Steelmaking In Other Countries

The U.S. Energy Information Administration (EIA) recently issued a report that explores the likely outcomes if the global steel industry became an early adopter of renewable hydrogen and increased its share of steel produced using electric arc furnaces.

The EIA estimated outcomes for four countries or regions: China, Europe, Japan, and South Korea. The report assumed that renewable-sourced hydrogen reached cost parity with fossil fuel-based hydrogen by 2030.

The report found the largest decrease in carbon intensity would be in Europe where, by 2050, carbon intensity would be cut by 31 percent. Europe represents less than one-tenth of world steelmaking, however. China is the largest global producer of steel. The EIA found the carbon intensity of crude steel production would fall 14 percent in China by 2050. South Korea’s carbon intensity would decline 22 percent while Japan’s would drop 24 percent.

The EIA noted steelmaking is one of the most energy-intensive industries, accounting for around seven percent of global carbon dioxide emissions in 2020. About two-thirds of the world’s steel is produced by a coal-based and carbon-intensive process. The remaining one-third of steel is produced through alternative processes, including the recycling scrap of steel.

Producing a larger share of steel with electric arc furnaces, using renewable hydrogen instead of coal, and increasing the share of recycled steel used in production are potential ways to decarbonize the industry, the report concluded.

Read the EIA’s analysis here.