Scotland-based energy research and consultancy company Wood Mackenzie has released a report stating that the steel industry’s carbon emissions are expected to fall by 30 percent by 2050 compared to 2021 levels with green hydrogen-based direct reduced iron (DRI), scrap use, and the adoption of carbon capture, utilisation and storage.
According to the report, the global share of electric arc furnaces (EAFs) in steelmaking is rising with policy shifts and the increasing focus on scrap use. Blast furnace (BF) output will decline by 0.5 percent annually until 2050, whereas EAF output could increase by 2.3 percent year-on-year in the same period. By 2050, EAFs will account for 48 percent of the technology share used in steelmaking, up from 30 percent last year, making it almost on a par with the traditional blast furnace method.
The steel industry is expected to commence hydrogen use as early as 2027, with the EU taking the lead. Hydrogen-based steel production will eventually account for 10 percent of the total steel output or 232 million mt by 2050. Wood Mackenzie projects that 40 percent of DRI produced by mid-century will be hydrogen-based.
Wood Mackenzie expects China to take the lead in reducing absolute emissions by halving emissions between 2021 and 2050. A major proportion of emissions reduction will come from the projected fall in steel output.