SEATTLE (Scrap Monster): The new report published by the research firm BloombergNEF states that steel industry would require to additionally invest nearly $278 million in order to eliminate carbon emissions by 2050. Also, hydrogen and recycling will be the key factors that are likely to play an important role in reducing emissions from steel production.
The report titled “Decarbonizing Steel: A Net-Zero Pathway” was launched during the recently held virtual BNEF Summit Shanghai. It outlines path to make profitable, low-emissions steel. In addition, it also demonstrates how falling hydrogen costs, cheap clean power and boosted recycling could help in reducing emissions, even in the midst of increased production.
Several key producing countries including China, Japan, Korea and the European Union have announced measures aimed at achieving net-zero carbon emissions by 2050.
According to the report, green hydrogen could emerge as the cheapest steel production method, capturing 31% market share. A share of 45% will come from recycled material. There would be a dramatic shift in the type of fuels and furnaces used in steel production. The conversion of major portion of the steelmaking infrastructure to hydrogen would require more DRI plants and electric furnaces, the report said.