The input cost of decarburization in global steel production is expected to be as high as 278 billion US dollars
Decarbonization is an important issue in the industry in the coming decades. For iron and steel production, an important part of national economic production, decarbonization in this industry is full of various challenges: high demand and high stability of heavily dependent on coal and power supply, and low waste recycling rate.
It is reported that the greenhouse gas emissions from global steel production are estimated to account for 7% of the total global emissions. According to a report by the energy data and Analysis Department of Bloomberg, the input cost of turning to zero carbon production in the steel production industry is expected to reach US $215-278 billion.
However, the study also points out that, nevertheless, the steel produced under this zero carbon production system may eventually be lower than today's price.
According to the report, about 69% of the current production is fueled by coal in blast furnaces. Given the combination of price and strength, there are no obvious steel alternatives, from buildings to cars to toasters and medical equipment. Therefore, "a strong and stable policy is very important for the decarbonization of the iron and steel industry."
The report believes that greatly increasing the sustainable supply of renewable energy power, improving the scrap recovery rate of electric arc furnace, equipping and popularizing carbon capture technology and using hydrogen technology will help to reduce or even eliminate carbon emissions. Bnef said that by 2050, the metal cost produced by this modified system will be lower than the current price. The five-year average price of crude steel is US $726 per metric ton, while the technology proposed in the report can make the price of steel from US $418 to US $598 per ton.