ResourceWhat is “green steel?” Some say it’s steel created from scrap metal. Others point to the manufacturing process itself and the use of renewable energy sources rather than coal-fired blast furnaces . Both would be correct.
American steel claims to have one of the lowest carbon footprints in the industry. That’s because, unlike many other parts of the world, 70 per cent of the steel made in the United States comes from recycled scrap, or secondary steel, produced in electric arc furnaces . Producing steel from scrap requires a supply of scrap that has reached its end-of-life in another product. Currently, however, there isn’t enough to meet demand, resulting in an ongoing dependency for virgin steel, much of which is produced in high carbon emitting blast furnaces. Yet as McKinsey Global points out in a
, so-called “green” steel could reduce the embodied carbon in a new commercial building by as much as 70 per cent by 2030.reports over half of the world’s steel-making capacity needs to transition to EAFs in order to reach the International Energy Agency’s net-zero target by 2050. However, current plans suggest a shift of only 32 per cent. India and China stand in the way.
“New materials such as green steel are more expensive and will therefore demand a new pricing model,” says the McKinsey report. “The reality is that, beyond technical challenges, companies face significant commercial and structural barriers. Certainly, the sector’s generally low margins are a limiting factor, dampening producer appetite for green technologies.”plans to build a $300 million EAF outside Auckland, with nearly 50 per cent support coming from the national government.