- Forging a greener future
As a hard-to-abate sector, steelmaking is responsible for a substantial portion of global carbon emissions. We heard from Israel MacDonald, sustainability and market director for New Zealand Steel, on alternative methods to reduce emissions in steelmaking.
Like concrete production, the steel industry faces a significant challenge in its quest for decarbonisation. As a hard-to-abate sector, steelmaking is responsible for a substantial portion of global carbon emissions. However, innovative solutions are emerging that promise to transform the landscape of steel production.
At the heart of traditional steelmaking is the blast furnace, where metallurgical coal is converted into coke, and iron ore is transformed into liquid iron. This process, while effective, is also carbon-intensive, primarily due to the chemical reactions that release CO2 as a byproduct. In New Zealand, the unique iron-making process utilizes iron sand, coal, and limestone, producing liquid iron through a slightly different method than the conventional blast furnace.
Despite steel being 100% recyclable, there remains a critical challenge: the global demand for steel far exceeds the available scrap material. Projections indicate that by 2050, only about 45-50% of the world’s steel demand could be met through recycled scrap. This reality underscores the need for alternative methods to reduce emissions in the primary steelmaking phase.
One promising avenue is hydrogen-based steelmaking. By replacing coal with hydrogen, we can significantly lower emissions. However, this transition is not without its challenges. The production of green hydrogen requires substantial energy, potentially consuming a quarter of the world’s electricity demand if implemented at scale. This necessitates a robust increase in renewable energy sources to support the shift.
In New Zealand, the introduction of an electric arc furnace (EAF) marks a pivotal step in decarbonisation efforts. Set to commence operations in late 2025, this project aims to reduce CO2 emissions by up to one million tonnes annually - equivalent to removing over 375,000 cars from the road, and utilising local post-consumer scrap. This shift not only represents a significant reduction in local emissions but also sets a precedent for other steelmakers globally.
Moreover, ongoing research partnerships, such as those with Victoria University, are exploring innovative methods to decarbonise iron sand using hydrogen. This research is crucial for addressing the local emissions from the remaining coal-based iron production.
As the industry moves forward, collaboration among stakeholders is vital. Engaging with suppliers and understanding their decarbonisation strategies will be essential for achieving net-zero goals. Additionally, initiatives like the roadmap for net-zero emissions in the steel sector, with partners including Metals New Zealand, will provide a framework for collective action.
While the path to decarbonisation in steel is fraught with challenges, the innovations underway offer a hopeful outlook. By embracing new technologies and fostering collaboration, the steel industry can significantly reduce its carbon footprint and contribute to a more sustainable future. The journey is complex, but with concerted effort and innovation, a greener steel industry is within reach.
