According to the presentation titled “Digitalization unlocks the brand value of green steel” delivered by Cai Lihui, researcher at HBIS Green and Low-Carbon Technology Co., Ltd., at the Asian Steel Forum held at Beijing on July 16, HBIS Group has participated in the World Steel Association’s Life Cycle Assessment (LCA)-related work for four consecutive years as a member of the LCA expert group. In Hebei Province, HBIS takes the lead in compiling carbon reduction methodologies for five categories - hydrogen heavy-duty trucks, hydrogen metallurgy, scrap ratio increase in BOFs, the road-to-rail freight shift, and carbon capture.
In June 2026, HBIS established a group-level subsidiary, HBIS Green and Low-Carbon Technology Co., Ltd., to accelerate its green transformation, develop carbon market businesses, integrate carbon data, assets, technologies and resources, and build a “1+3+N” business eco-system to unlock green steel value.
Mr. Cai stated that green steel is no long a value-added advantage that companies can choose to pursue, but a prerequisite for whether they can produce and market their products, which is like a market entry requirement.
The EU’s CBAM entered its definitive compliance phase from January 1, 2026, requiring six sectors, including steel and aluminum, to report carbon emissions and purchase CBAM certificates. Meanwhile, China’s carbon market plans to bring the steel industry under full-process carbon allowance compliance management in 2026. Carbon allowances may shift from surplus to scarcity, creating a more stringent domestic regulatory environment for steelmakers. Mr. Cai said digital capabilities - such as the ability to accurately quantify product carbon footprints, obtain internationally recognized certification, and meet customers’ requirements for carbon data traceability - are emerging as the decisive factor in determining whether steelmakers’ brands can clear the green market access threshold.
With “green and low-carbon” at the core, HBIS completed “Four New Areas” that represent the global direction of steelmaking, and pioneered the “6+2” low-carbon technology roadmap and low-carbon product development plant.
HBIS is conducting innovations in process structure, energy mix, and material technology.
The company is rolling out six technology pathways and establishing two management platforms.
HBIS’ goals are to reduce carbon emissions by 10 percent from the peak by 2025, by 30 percent from the peak by 2030, and to strive for carbon neutrality by 2050.
HBIS’s low-carbon product planning is closely aligned with diverse customer needs while fully leveraging its low-carbon leadership role. Through coordinated efforts on both the production side and the demand side, HBIS systematically integrates its own steel product development positioning with the requirements of various downstream industries and targeted steel-using customers, while maintaining a well-paced implementation roadmap.
There are eight key factors for the low-carbon product roadmap - developing ultimate energy efficiency, higher pellet ratio in BF feeds, hydrogen-enriched BF injection, higher scrap and DRI ratios in BOFs, raising the green power ratio, raising green hydrogen usage, a higher biomass energy share, and carbon capture, utilization and storage.
The automotive industry’s demand for green steel is primarily driven by the pressure to decarbonize supply chains under global “carbon neutrality” targets, reinforced by international green trade barriers such as the EU’s CBAM.
Leveraging its world-leading new short-process route - the “hydrogen-based shaft furnace and near-zero-emission EAF” - HBIS Group has provided BMW Group and others with green automotive sheets solutions that achieve near-zero carbon emissions. These solutions precisely meet the core requirements for full lifecycle carbon footprint transparency and phased deep decarbonization.
To meet the green steel demand of the home appliance industry - which requires high surface quality, excellent formability and cost-controlled solutions - HBIS has applied a converter duplex process with a 50.65 percent scrap ratio to produce ultra-low-carbon steel DC04. This enables customized production of TV back panels for Sony, delivering both high product performance and low-carbon benefits.
In addition, HBIS seek to establish a shared predictive model for product carbon footprints and production costs in collaboration with upstream and downstream partners. This will make low-carbon investments visible, measurable and financially viable, ensuring that sustainability efforts will translate into tangible financial returns.
There are changes in materials, including ferrous scrap, green electricity, biomass, green hydrogen and natural gas.
