Global steel industry needs to cut about 90 percent of its carbon emissions to achieve net zero by 2050, Trend reports via the Global Coal Forum recap at Wood Mackenzie, a global research and consultancy group.
According to the report, “the steel industry emits 3.3 BtCO2e annually – 7 percent of global emissions. Steelmakers must capitalize on new, low-carbon opportunities en route to the immensely challenging 1.5°C pathway”.
“In terms of primary metallic, green hydrogen-based direct reduced iron (DRI) and scrap will blaze a trail. Hydrogen-based steel shall comprise more than a quarter of global steel output. Carbon capture and storage would be essential, but its role could diminish beyond 2040 due to limitations on capture rates and the rising penetration of new technologies”, the experts said.
Meanwhile, as WoodMac experts noted, green hydrogen will eventually replace coal in steel and power production.
“As countries race to net zero and low-carbon hydrogen costs fall, hydrogen will displace coal in steel and power – either directly or in the form of derivatives such as ammonia. (Green hydrogen is set to reach parity with grey and brown as early as 2035 in countries like India and China). This displacement will make the Asia Pacific region the largest consumer of low carbon hydrogen by 2050, with a combined demand from steel and power alone of 40 Mtpa,” the report added.