Steel production accounts for approximately 7 to 9 percent of total world CO2 emissions since blast furnaces are propelled by coal to convert iron ore to iron. Coal-based electricity generating plants are responsible for approximately 1.8-3 metric tonnes of CO2 emissions for every metric tonne of steel produced.
What Is Green Steel?
Green hydrogen technology replaces the function of coal in removing oxygen from iron ore, and an electric arc technology is used to melt the ore supplied by green hydrogen via renewable energy sources. In Sweden, Stegra boasts its technology that can significantly cut emissions by up to 95 percent and predicts its output of 5 M tonnes of green steel by the year 2030.
What Are The Existing Limitations?
Cost is the main challenge since low-carbon steel is currently priced at about €150 above conventional steel and green hydrogen is not cheap. A few other start-up companies in Europe postponed their projects due to high energy prices and low metal prices.
Is It Possible For The Industry To Stop Using Coal?
Yes, if the necessary infrastructure meets the demand of low-cost renewable energy production, government policies help, and green hydrogen gets cheap enough. The electric arc furnace and the hydrogen reduction were to be started in 2026 at the Boden plant in Stegra.
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