Steel could go green by 2050 and it will only cost US$278 billion to get there: BNEF

Research house BloombergNEF says US$278 billion (A$390bn) of additional investment could see the industry make steel with almost no carbon emissions by 2050.

BloombergNEF launched a new report today called Decarbonizing Steel: A Net-Zero Pathway, which claims a combination of falling hydrogen costs, cheap clean power, and increased recycling could reduce emissions to net zero while production rises.

Around 70% of steel is currently made in coal-fired blast furnaces, with about 60% of the market located in China.

Report authors say investments now in gas-fired direct reduced iron mills which could be retrofitted to take green hydrogen could reshape the market and prepare those plants for conversion into green steelmakers.

BNEF estimates by 2050, green hydrogen fired DRI could be the cheapest portion of the steel sector with a 31% market share.

45% of the market could come from recycled scrap in electric arc furnaces with the balance provided by coal-fired plants fitted with carbon capture systems and innovative processes using electricity to refine iron ore into iron and steel.

 

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