Green Steel Production: The Future of Civil Engineering

Steel is the backbone of contemporary construction, with 1.8 gigatons produced last year alone, making up 90% of all metal produced globally. From wind turbines to electric vehicles, steel is crucial for the energy transition. However, traditional steel production is a major source of greenhouse gas (GHG) emissions, accounting for 7% of global emissions from the energy system. This includes emissions from processes that require very high temperatures, which makes decarbonizing steel production more challenging than other sectors.

A revolution in steel production is within reach. Leading steel-producing nations, including China, Japan, the EU, and the US, have set ambitious targets to achieve net-zero economies by 2050. This necessitates a transition to radically different, zero-emissions primary steelmaking. Technological solutions, such as replacing coal with green hydrogen, carbon capture and storage (CCS), and direct iron electrolysis, are approaching readiness. Major industry players like Arcelor Mittal and China Baowu Group have committed to net-zero steelmaking.

Despite these advancements, the economic viability of green steel production remains a challenge. Low-emissions steel products are projected to cost 20-50% more than conventional steel, with first-of-a-kind plants being even more expensive. While carbon pricing could theoretically bridge this gap, a coordinated global mechanism is not yet in place. Regional policies imposing additional costs on steel producers could affect market share and investment in climate-conscious regions.

Steel plants operate continuously, with major reinvestments occurring approximately every 20 years. This decade presents a unique opportunity, especially in Europe, where about half of the steel assets are due for reinvestment. Transitioning these assets to zero-emission technologies is crucial to avoid locking in high-carbon investments for the next two decades.

The Mission Possible Partnership, through the Net-Zero Steel Initiative (NZSI), aims to create a compelling business case for green steel. The upcoming roadmap will outline the transition to zero-emission steel production, including the pace of GHG abatement, deployment strategies, and necessary investments and policy interventions. This roadmap will be pivotal for stakeholders to make tangible commitments and drive the transformation of the global steel market.

In conclusion, the civil engineering sector stands at the cusp of a revolution in steel production, essential for achieving net-zero emissions by 2050. Embracing green steel will not only reduce the carbon footprint of construction projects but also set a precedent for other industrial sectors. As the world gears up for COP26, the steel industry’s commitment to a credible, actionable roadmap provides a beacon of hope for sustainable development in civil engineering and beyond.