H2 Green Steel’s
ambitious project paradigm shift in the industry is often considered a “real
bad boy” from an environmental perspective.
In an
innovative move towards a greener future, Sweden’s H2 Green Steel is about to
build the world’s first commercial-scale steel plant with the potential to
reduce CO2 emissions by an astonishing 95 percent. Newsweek disclosed.
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The key
lies in an innovative process that replaces traditional carbon-heavy coke with
hydrogen, producing only steam during the steelmaking process. This important
step towards sustainable steel production comes as the industry grapples with
nearly 7 percent of global CO2 emissions.
Lars
Lundström, head of product sustainability at H2 Green Steel, shared insights
into the revolutionary process and said: “In our process, we replace coke with
hydrogen.” The changes will not only affect the environment, but also align
with the global drive to reduce carbon emissions. The company’s strategically
located facility in northern Sweden harnesses carbon-free electricity from
abundant water and hydropower, setting the stage for transformation in the
steel industry.
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However,
the journey to green steel involves more than technological innovation. To fund
such efforts, companies like H2 Green Steel must manage the delicate balance of
market demand and investor confidence. Jen Carson, head of the Climate Group’s decarbonization
efforts, emphasized the need for clear standards, saying, “A big part of our
job is to provide clear, consistent, and reliable definitions in terms of tons
of carbon per ton of steel ” he said.
Recognizing
the importance of green steel, major companies such as Jindal Steel &
Power, Mercedes-Benz and Microsoft are actively participating in initiatives
such as the Sustainable Steel Buyers Platform. With a commitment to purchase
nearly 2 million tons of near-zero steel, industry leaders are driving demand
for sustainable products. Microsoft Climate Innovation Fund’s investment in H2
Green Steel represents a strategic alignment with the transition to green steel
production.
Leading
car manufacturer Volvo H2 has signed a long-term supply agreement with Green
Steel, highlighting the important role that steel plays in its sustainability
goals. Anders Kärrberg, Volvo’s head of global sustainability, acknowledged the
challenges but expressed enthusiasm, saying, “Steel makes up 50 percent of a
car’s weight.” As the automotive industry looks for alternatives, the prospect
of nearly carbon-free steel is in line with Volvo’s ambitious goals for
electric vehicles and climate neutrality.
Although
H2 Green Steel pioneered the hydrogen-based transformation, not every
steelmaker has such abundant green power. Illinois-based LanzaTech offers an
alternative approach using Carbon Capture Utilization and Storage (CCUS). By
using bacteria to convert captured CO2 and industrial gases into ethanol,
LanzaTech’s method not only reduces waste, but also potentially reshapes the
chemical supply chain, creating valuable products.
As the
world’s largest steelmaker outside of China, ArcelorMittal embraces green steel
with a unique twist—gas fermentation. ArcelorMittal’s head of sustainability,
James Streeter, highlighted their ambition to become a major green steel
producer. However, challenges remain, especially in terms of cost.
Acknowledging
that the success of green steel depends on economic sustainability, Streater
emphasized the importance of profitability throughout the supply chain.
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