A new report from multinational steel manufacturer ArcelorMittal states its ambition to significantly reduce global CO2 emissions and be carbon neutral in its European operations by 2050.
To achieve this goal the company is building a strategic roadmap linked to the evolution of public policy and developments in low-emissions steelmaking technologies. A target to 2030 will be launched in 2020.
The report explains in greater detail the future challenges and opportunities for the steel industry, the plausible technology pathways the company is exploring as well as its views on the policy environment required for the steel industry to succeed in meeting the targets of the Paris Agreement.
As one of the world’s most prolific materials, with 1.7 billion tonnes of steel produced in 2018, the steel industry today accounts for approximately 7% of global emissions. And with demand for steel and materials set to further increase, forecasts show demand rising to 2.6 billion tonnes in 2050, it is vital the industry finds ways to significantly reduce its carbon emissions to successfully meet the ambitions of the Paris agreement and help limit the global average temperature rise to less than two degrees.
At present carbon is used as a reductant in the blast furnace to separate oxygen from iron-ore as a critical part of the steel-making process. Significantly reducing the emissions footprint of steel will, in all likelihood, require a fundamental change in the science of steelmaking
As a leading steel company, ArcelorMittal recognises its role in developing breakthrough technologies that will support and enable a global transition to a low-carbon economy. The company has identified three distinct pathways that have the potential to deliver a significant reduction in carbon emissions. These are:
- Clean power steelmaking, using clean power as the energy source for hydrogen-based steelmaking, and longer-term for direct electrolysis steelmaking;
- Circular carbon steelmaking, which uses circular carbon energy sources, such as waste biomass, to displace fossil fuels in steelmaking, thereby enabled low-emissions steelmaking;
- Fossil fuel carbon capture and storage, where the current method of steel production is maintained but the carbon is then captured and stored or re-used rather than emitted into the atmosphere.
ArcelorMittal believes that all three pathways offer significant emissions reduction potential aligned with science-based targets and is currently testing various technologies across all three pathways in its European operations. This technology portfolio will enable the company to pursue the appropriate option depending on the pace of technology and public policy development, which will impact which pathway becomes the most viable in the countries and regions where the Group operates.
In terms of public policy recommendations, ArcelorMittal advocates the development and implementation of carbon regulations and market mechanisms to enable the deployment of low-emissions steelmaking that will help to deliver the global objectives of the Paris agreement. The Company’s global policy recommendations include:
- Global level playing field is needed to maintain the competitiveness of low-emissions steelmaking and to avoid the risk of carbon leakage, for example, through green border adjustments
- Access to abundant clean energy at affordable prices will be key to be able to scale up low-emissions technologies
- Facilitating necessary clean energy infrastructure will be needed to advance large-scale implementation of low-emissions technologies
- Access to sustainable finance in order to accelerate and roll out technology development
- Accelerate transition to a circular economy by incentivising the use of waste streams as inputs in manufacturing processes
The report is available for download
here.
ArcelorMittal
www.arcelormittal.com