A survey of 18 major steelmakers has shown that major steelmakers around the world are lagging behind in the transition to low-carbon production, with some still relying entirely on fossil fuels for energy.
Steel accounts for 7% of global carbon dioxide emissions, roughly the same as India, with coal-fired blast furnaces producing 2,000 tonnes of carbon dioxide per tonne of output.
Alternative technologies are available, including electric arc furnaces that can be powered by renewable energy sources, and efforts are underway to produce steel using “green hydrogen” instead of coal.
But some of the biggest companies in the sector were still 99% dependent on fossil fuels for their energy needs in 2022 and 2023, according to Sydney-based climate group Action Speaks Louder.
The main obstacle is affordability, said Laura Kelly, the organization’s strategist who developed the survey.
The best performer was Sweden’s SSAP, which got 19% of its energy from renewables.
Some of the worst performers were in South Korea, where Hyundai Steel, Dongkook Steel and POSCO all had a renewables share of their total energy, or close to it, despite producing large amounts of steel through electric arc furnaces. None of the companies responded to requests for comment.
Kelly said some companies had a vested interest in maintaining the status quo because of investments in fossil fuel infrastructure, including import terminals and pipelines.
