Driving green innovation in the steel industry
Published on: May 23, 2024
Steel is an essential building block of the modern society, found in everything from towering skyscrapers to humble household items.
While vital, steel production leaves a significant environmental footprint, accounting for 8 per cent of global carbon dioxide emissions, which is more than any other heavy industry.
Over the past decade, these emissions have consistently increased in parallel with the growing demand for steel, a demand that is projected to rise by an additional 30 per cent by 2050.
Today, there are roughly 1,000 steel mills in the world with approximately 1,400 traditional blast furnaces. These furnaces employ coal, specifically coke, to reduce iron ore and generate crude iron. This stage of production is responsible for a majority of climate emissions within the steel industry, making the transition towards sustainability challenging due to coal’s integral role in the entire process.
Three paths to net zero
There are at least three technical solutions that will allow the steel industry to reposition primary steelmaking to work towards net-zero emissions: carbon capture, an electrochemical process similar to that in aluminium production and direct reduction with hydrogen gas. The latter solution has been chosen by major steel producers such as SSAB/Hybrit, ArcelorMittal and Salzgitter.
Additional solutions may be introduced, and different segments of the industry will likely follow diverse paths. While all European steel companies are undergoing a green transition, they are at varying stages of the process.
“From a European perspective, it is crucial to take immediate action to address the challenges posed by climate change and accelerate the transition to a sustainable and low-carbon economy. This requires efficient and streamlined permit processes that facilitate the development and deployment of innovative and environmentally friendly technologies,” says Martina Söderström, Division Manager Environment & Planning at Sweco Sweden.
Startups are tapping into the green transition
The need to completely reset a heavily invested process industry that has largely functioned in the same way for centuries also opens the option of starting from scratch.
In recent years, several startups have emerged in the steel sector — benefiting from the advantage of building an Industry 5.0 from the ground up, which gives them an edge over established players.
Smart manufacturing is transforming new greenfield factories even more through the use of sensors, connected machinery, AI and data analysis tools that enable predictive maintenance, optimised production and real-time monitoring.
“Heavy industry is changing radically. It is a reset on a completely different level, almost like industrialisation all over again. Many old companies are at risk when new players come in as it can change the entire market. The new players also have a completely different structure and a completely different leadership,” says Fredrik Axby, Division Manager for Energy & Industry at Sweco Sweden.
Norwegian company Blastr Green Steel has plans to establish an iron pellet plant in Great Britain. This plant will serve as the raw material supplier for the company’s upcoming green steel mill in Finland. However, Blastr is still in the process of finalizing the financing for the project. The company aims to commence testing and start operations no later than 2028.
Meanwhile, French startup Gravithy is also making waves in the industry. The company has its sight set on building hydrogen-based plants for the production of fossil-free steel in both Finland and near Marseille, France. However, the resolution of funding remains a critical factor for these ventures. Among the European newcomers is also Spain’s Hydnum Steel, which plans to have its first steel plant ready by 2026 and hopes to produce 2.6 million tonnes of green steel annually from 2030.
A Swedish company is among those that have progressed the furthest in their plans to establish a brand-new steel mill. The company has secured financing of SEK 75 billion and expect to be in full production before the previously planned start date of 2030.
“Countries can repatriate the processes that create value, such as green steel production, thanks to automation. In the past, Sweden exported a lot of unprocessed ore because it was so expensive to produce steel in Sweden because it is a labour-intensive process. Being able to base the entire process within the country’s borders has many advantages, not least from a resilience point of view,” Fredrik Axby says.
Transforming waste wood into clean energy
Steel production has long been synonymous with high energy consumption and carbon emissions. But Belgian steelworks ArcelorMittal Ghent is sketching a new path with the construction of the Torero installation. The essence of Torero is simple yet innovative: converting waste wood into biocoal, a sustainable alternative to fossil fuels.
This process, appropriately named “TORefying wood with Ethanol as a Renewable Output,” is a game-changer for the industry. It not only mitigates CO2 emissions but also provides a solution for managing challenging wood waste streams. The initial phase of Torero aims to convert 120,000 tonnes of waste wood into approximately 50,000 tonnes of biocoal each year.
At Sweco, we believe in the importance of sustainable solutions that reuse materials and resources. The Torero project shows how innovation and collaboration can drive sustainable change in steel production. Our colleagues with expertise in energy, industry and infrastructure worked together to find the best solutions for this steel plant.
