At a panel discussion on energy on October 10 at the 50th annual meeting of worldsteel (World Steel Association) held in Dubai, the discussion chaired by Edwin Basson, director general of worldsteel, focused on trends in energy, carbon reduction and new technologies, and the impact of these issues on the steel industry.
The participants included Mounir Bouaziz, Vice President at Shell MENASA, Eric Masanet, head of the Energy Demand Technology Unit at the International Energy Agency, and Dr. Brian Flannery, Chair, Major Economies Business Forum on Energy Security and Climate Change (BizMEF). The particpants agreed that energy will for the foreseeable future remain dependent on coal, while also agreeing that the emphasis must on new technologies and a shift to other sources of energy. Mr. Massanet said gas was a bridge fuel to carbon reduction, while progress would also be achieved through new technologies. Mounir Bouaziz commented that all known forms for energy will have to play a role for the foreseeable future, but the question is how can we move quickly to decarbonization, going on to suggest that the best way is to tax C02 emissions. In relation to carbon tax, Mr. Flannery said the problem was that it was difficult to achieve a uniform global carbon prices, given the various impacts it would have on different countries, especially underdeveloped countries.
In answer to a question from the discussion chairman on how far the steel industry can go with existing technologies, Eric Massanet stated that the current technologies in the steel industry are improving and so there is potential there, though a long-term view needs to be taken. He said that, in his view, materials efficiency may be the next big lever for the steel industry, and this could also include longer-lasting steels. Efficiency could also be achieved in steel, he added, by adopting new business models, while adding that time is of the essence and, if the industry does not pursue CCS (carbon capture and storage) in the next few years, then it becomes harder to take steps later.
Edwin Basson went on to ask the panelists how the steel industry can face an avalanche of climate change-related regulations at a time of historically-low profitability for the industry. Mr. Bouaziz advocated a gradual step-by-step approach, while Flannery said that the choice of projects in the steel industry is important. Massenet pointed to the cement industry as a model for greater transparency with regard to industry data. Better visibility and data, as in the cement industry, would be a great tool for policymakers and this would also help the steel industry, he said.