SEATTLE (Scrap Monster): The latest research report published by San Francisco-based Global Energy Monitor (GEM) says that the switch from basic oxygen furnace (BOF) steelmaking to scrap-based electric arc furnace (EAF) is happening at a slow place. The world’s two largest steel producers-China and India, still largely rely on BOF technology, the report noted.
Under current circumstances, the ratio of BOF to EAF steelmaking technology is likely to shift from 69:31 in 2022 to 68:32 in 2030. Moreover the ratio is likely to remain approximately the same through to 2050.
There are 345.3 million metric tonnes per annum of BOF capacity which are either proposed or are under construction stage. If all the above capacities are fully developed, the industry could face $518 billion in stranded asset risk, especially due to long-term carbon neutrality commitments by various countries. Out of these, up to $237 billion are located in China and another $184 billion are in India.
It must be noted that the net-zero by 2050 scenario proposed by the International Energy Agency requires that the share of EAF steelmaking capacity should touch 37% by 2030 and 53% by 2050. For this, there needs to be additional 576 million tonnes per annum EAF steelmaking capacity.
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