Scotland-based energy research and consultancy company Wood Mackenzie has stated in its latest report that the steel industry’s decarbonization efforts through direct reduced iron (DRI) production with green hydrogen may heavily affect zinc circularity. According to the company, increased use of DRI in electric arc furnaces (EAF) compared to scrap is expected to drive up the cost and carbon intensity of zinc recovery due to the reduced zinc content in the EAF dust.
It is estimated that steelmakers produce about 535 million mt of crude steel per year through EAFs, which results in steel dust containing 200,000-3.4 million mt of zinc. In the global market, about 1.6 million mt of zinc per year is acquired from the zinc in steel dusts and other residues. Thus, increased use of DRI in EAFs will cause a drop in zinc-rich dust, that will further increase the cost and carbon intensity of zinc recovery.
“By 2050, nearly half of the world’s steel production is projected to be through the EAF route. This transition is necessary for decarbonization efforts, but it poses challenges for the zinc industry in meeting the demands of decarbonization and the circular economy,” Andrew Thomas, head of Zinc Markets at Wood Mackenzie, stated.
It should be noted that, since the current zinc recycling technology emits high levels of carbon, it is difficult for the zinc market to have the same decarbonization efforts in line with the steel industry.
