Green steel is crucial for global sustainability as it significantly reduces carbon emissions in one of the most polluting industries. Through technologies such as the use of green hydrogen and the electrification of processes, green steel minimizes environmental impact while maintaining the material’s strength and versatility.
This is essential to meet international climate goals and reduce the carbon footprint in sectors like construction and manufacturing. Additionally, its adoption strengthens companies’ competitiveness in an increasingly sustainability-focused market. Green steel is key to building a cleaner and more responsible future.
To make this a reality, the steel industry needs to adopt several innovative technologies and practices such as:
Green Hydrogen Production: The use of hydrogen instead of coal for iron reduction is one of the most promising solutions. This process can reduce up to 90% of CO₂ emissions associated with steel production. Pilot plants are already being developed in Europe, with projections that this technology will be adopted on a large scale over the next two decades.
Steel Recycling and Circular Economy: Currently, approximately 30% of the world’s steel is produced in electric furnaces from recycled scrap, a process that generates significantly fewer emissions than primary steel production. The industry is committed to increasing this proportion, as steel recycling is one of the most efficient ways to reduce environmental impact.
Electrification and Renewable Energy: Electrifying production processes using renewable energy sources such as solar, wind, or hydropower is key to reducing CO₂ emissions. This not only involves changes in industrial processes but also significant investment in energy infrastructure.
Carbon Capture and Storage (CCS): For steel production plants that cannot fully electrify in the short term, carbon capture and storage technologies are being explored as a solution to reduce emissions. These technologies allow CO₂ emitted during production to be captured and stored safely.
Global Impact and Industry Opportunities
The transition to green steel is not just about sustainability but also competitiveness. As more countries implement decarbonization policies and set carbon taxes, steel producers that don’t adopt clean technologies will face higher operational costs and potential trade barriers. On the other hand, those leading the production of green steel could benefit from a significant competitive advantage.
