The Drive Towards Low Carbon and Green Steel
Greener Steel: How the Industry is Cutting Carbon Emissions
As industries worldwide move towards net zero targets, the steel sector – historically one of the largest CO2 emitters – is undergoing a transformation. The push for low-carbon and ‘green steel’ is gathering momentum, with significant implications for manufacturers, stockholders, and end users.
Why is Green Steel Important?
Steel production accounts for approximately 7-9% of global CO2 emissions. Reducing these emissions is critical to meeting climate goals and transitioning to a more sustainable industrial future.
How is Green Steel Produced?
1. Electric Arc Furnaces (EAF): Using recycled scrap steel with electricity from renewable sources significantly lowers emissions compared to traditional blast furnaces.
2. Hydrogen Reduction: Instead of coke, hydrogen is used to reduce iron ore, emitting water vapour rather than CO2. This technology is in early adoption stages but has huge potential.
3. Carbon Capture and Storage (CCS): Capturing CO2 from blast furnaces before it enters the atmosphere.
Who is Leading the Way?
European steel giants like SSAB, ArcelorMittal, and Thyssenkrupp are investing billions into green steel production facilities. In the UK, British Steel and Tata Steel have announced plans to decarbonise operations, aiming to offer greener products within the next decade.
What Does This Mean for Bright Steel Bar Customers?
For customers of Midland Bright Steels, the shift towards green steel will:
• Enhance Sustainability Credentials: Using low-carbon bright steel bars can help manufacturers meet environmental standards and satisfy customer expectations for greener supply chains.
• Affect Pricing: Green steel currently costs more due to investment in new technologies, but as production scales up, prices are expected to stabilise.
• Require Planning: Companies need to engage with their steel suppliers to understand availability and integrate greener materials into their production without disruption.
Midland Bright Steels’ Role in the Green Transition
We are committed to sourcing steel from reputable mills that prioritise sustainability. As green steel availability increases, we will work with customers to incorporate low-carbon options, ensuring you can meet your sustainability goals while maintaining the quality and machinability your production demands.
The Road Ahead
Transitioning to green steel is not optional – it is an industry-wide imperative. By partnering with forward-thinking stockholders like Midland Bright Steels, manufacturers can future-proof their operations and contribute to a cleaner, more sustainable world.
