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Green steel - prospects of the steel industry in the future

Green steel - prospects of the steel industry in the future

BlogDate: 23-10-2023 by: Nhu Quynh

In the future, "green steel" can completely replace conventional steel, but this is a long-term game and costs a lot of money. So let's find out with MRS Steel what green steel is and why it is so important.

Steelmaking is an industry that pollutes the enviroments

Among heavy industries, steel production, although it plays the most important role in the world economy, is also the industry that emits the most CO2. According to a Bloomberg NEF report, the steel industry accounts for about 8%–9% of the world's total carbon emissions. Currently, blast furnace steel production accounts for 70%–80% of steel making technology being applied worldwide; the remaining few are applying green steel making methods. No matter how steel is smelted, the industry is still emitting many harmful gasses that affect people and the environment.

In the steel manufacturing industry, normally to produce 1 ton of steel, 10,000 m3 of exhaust gas and 100 kg of dust must be released into the environment, along with many other harmful emissions, which contain many heavy metals and metal oxides such as CO, CO2, SO2, and NO2.

Green Steel - The future of the steel industry

Green steel is a steel product that is manufactured using environmentally friendly technology but is not really different from conventional steel. The steel produced relies heavily on the use of green hydrogen, a product of renewable electricity, rather than burning coke and iron ore like conventional steel. A process with great promise for the steel industry, as the carbon and hydrogen decarbonization routes will release water, thereby reducing the amount of CO2 in the steel industry by up to 90%.

Of these, hydrogen used in green steel can be generated in many ways, such as through electricity, which uses an electric current that splits water into oxygen and hydrogen. If the electricity comes from wind or solar energy, then the hydroelectric output is called green hydrogen or renewable hydrogen.

The Earth is increasingly warming due to the impact of the greenhouse effect, which is the main cause of direct impacts on human life. In the context of countries' governments taking measures to improve the environment, green steel production is a method that is both vital for the steel industry and contributes to limiting global climate warming.

Is green steel expensive?

Green steel will be more expensive than conventional steel because it uses more complex and expensive production methods. In 2018, SSAB published an estimate that green steel prices were about 20%–30% more expensive than conventional steel prices at that time. Therefore, if the production cost is higher, the price of green steel in the future may become more and more expensive. As a result, the price of products made from steel will also increase.

With the benefits it brings, green steel will be the main source of steel and the future of the steel industry in the near future. Hopefully, with the use of this renewable energy source, the steel industry will reduce its impact on nature and the environment. MRS Steel has just brought you information about green steel and its benefits. If you have any questions, please contact us here.