Decarbonization and solutions towards carbon neutrality have been among the major topics discussed during the 2022 SEAISI Steel Mega Event & Expo being held in Malaysia on November 14-18.
Dr. Edwin Basson, director general of the World Steel Association (worldsteel), made a presentation on this topic, pointing out that more efficient usage of steel is even more important for decarbonization of the steel industry (its role is around 55 percent in the whole process) than switching steel capacities to recycling raw materials (up to 45 percent).
The average duration of the usage of steel finished products is around 40 years, but, if this figure reaches 45 years in the future, this will mean 20 billion tonnes CO2 emissions will be pushed forward, according to Dr. Basson. High strength steel, the usage of the mix of steel with other products - all this can work for the increase of the life of steel products. In the mono-centric cities (Beijing, Bangkok, Dubai, Istanbul), where the construction, mobility and energy sectors are developing more rapidly, steel usage will be higher. Also, the future of the steel consumption increase belongs to non-residential construction, infrastructure and energy supply.
Of course, the switching of steel capacities to more green production is also a necessity and after 2030 the replacement of BFs will be even more important. There are three major route processes, which will promote carbon neutrality: EAF production using scrap, EAF production using H2 DRY and BF+BOF with carbon capture and sequestration.
Though it is obvious that the megatrends such as climate change and the need for decarbonization are impacting the whole world, the situation in the ASEAN region is different from that in developed countries and “Asia is searching for its own way at the moment,” Dr. Basson said.
ASEAN governments have to balance between economic development and decarbonisation, according to Dr. Karel Eloot from McKinsey & Company. Malaysia and Vietnam are the only countries in the ASEAN region committed to reaching zero-carbon emissions by 2050.
With the latest increase in crude steel production in the ASEAN region, the region is more self-sufficient and imports of steel are going down, but at the same time the problem of overcapacity is looming, especially taking into account that there are some huge capacity expansion plans (for BF/BOF based mills in particular).
“While all people are “greening”, we [SE Asia] are degreening,” Yeoh Wee Jin, secretary general of the SEAISI, commented during the panel session. “Decarbonization starts with the power sector and we see a terrible tendency – the increased use of coal in all ASEAN countries, except Singapore,” he noted.