Undoubtedly, steel is among the most extensively used product with applications ranging from the needle to a massive structure, from nails to aircraft, and whatnot. The most prominent areas utilizing steel include building & infrastructure, making mechanical equipment, automotive, metal products, domestic appliances, electrical equipment, etc.
Besides its massive utilization across industries, it is also one of the prominent elements that significantly impact the environment in various ways like emissions (CO, NOx, SOx, PM2), wastewater contaminants, hazardous wastes, and solid wastes.
This aspect is playing a crucial role in instigating the governments, prominent organizations, associations, and institutions, among others, to bring innovations & alternatives to steel to address the alarming environmental issues and bring cleaner resources for multiple applications.
As a result, after several research & developments, the concept of Green Steel got introduced to reduce the environmental effects by minimizing the carbon footprint. It was UNSW Australia, where producing steel with the lowest level of carbon possible seemed possible.
Instead of coal, green steel is made up of hydrogen and presents numerous opportunities for developers in the industry. The hydrogen used in the production of green steel is procured from renewable resources and replaces the need for fossil fuels. It, in turn, adds up to another aspect displaying the approach of green steel toward renewable resources rather than inclination on fossil fuels. As of 2022, the Global Green Steel Market is in its embryonic stage. However, it is anticipated to witness an upswing between 2025 & 2030, cites a recent research report.
The Strong Potential of Green Steel
Since the rapidly depleting environmental conditions are raising alarming concerns, governments of different countries worldwide are actively supporting green steel production by laying out favorable policies and witnessing the increasing participation of prominent stakeholders globally.
In fact, several stakeholders are also establishing robust partnerships & strategic alliances for the transformation of their businesses by procuring green steel in the coming years. Reducing the carbon emission level remains a prominent aspect driving the demand for green steel across verticals like construction, industrial, electronic, automotive, etc.
Additionally, the mounting concerns among the automotive & transportation sector over the rapidly increasing carbon emissions is another prominent aspect encouraging the utilization of cleaner resources like green steel for manufacturing vehicles & components. As a result, several companies like Daimler AG, Mercedes-Benz AG, & Volvo AB are showing immense interest in adopting green steel in the coming years.
An Emerging Trend in the Green Steel Industry
Green steel technology was made in the UNSW and attained a major milestone worldwide by preventing a substantial amount of waste rubber tires from ending up in landfills and discarding them suitably. The old tires & plastics are known for providing carbon & replacing non-renewable coke, i.e., utilized in making steel in electric arc furnaces. OneSteel, an Australian-based company, used these types to manufacture steel in their Sydney & Melbourne facilities. This aspect would encourage the proper utilization of discarded rubber tires and use them efficiently in line with green steel.
Green Steel in Europe: Sooner Than Expected
Amongst all regions globally, Europe is the leading participant in green steel production on account of stringent regulations by European governments to reduce massive carbon emissions. It, in turn, is generating numerous growth opportunities for the leading market players to bring innovations in clean resources and utilize green steel for different applications in the coming years.
According to the European Union, in 2019, Europe produced nearly 150 MT of steel and generated around 221 MT of GHG emissions annually. It roughly translates to 5.7% of the total carbon emissions of the EU, thereby augmenting the need for decarbonizing the steel industry over the forecast years.
While green steel is still undergoing rapid research & developments in Europe, its commercial availability is not expected anytime soon till 2024. However, several pilot projects have taken place to study and analyze the overall feasibility of manufacturing green steel. Yet, the market hints toward the presence of multiple growth opportunities for the Global Green Steel Market in the coming years, which shall encourage the leading companies in the industry to speed up the green steel production while taking care of its overall production costs.
With the rapidly increasing need to address the alarming concerns associated with fossil fuel depletion, adopting cleaner & greener solutions is becoming crucial day by day. Additionally, since the steel industry is one of the largest producers of carbon emissions, it is becoming critical for industry leaders to actively participate in the research & development associated with green steel production. It, in turn, would generate significant growth opportunities for the Global Green Steel Market over the coming years.