Green Hydrogen Decarbonizing and Revolutionizing the Steel Industry

The steel industry is one of the largest contributors to global carbon emissions, responsible for approximately 7% of total CO2 emissions. The production processes involved in steelmaking, particularly the traditional blast furnace-basic oxygen furnace (BF-BOF) method, are energy-intensive and emit large quantities of greenhouse gases (GHG). With increasing pressure to reduce carbon footprints across industries, green hydrogen is emerging as a promising alternative to help decarbonize the steel sector. This article explores how green hydrogen is revolutionizing steel production, the different methods of steelmaking, and how the shift to hydrogen-based technologies can drive sustainable industrial practices.

Quiz on Steel Production Methods

Steel Production Methods Quiz

1. What is the global production share of steel through the Blast Furnace-Basic Oxygen Furnace (BF-BOF) method?

Choose the correct answer:

2. Which method of steel production is the most carbon-intensive?

Choose the correct answer:

3. What is a key advantage of the Electric Arc Furnace (EAF) method over BF-BOF?

Choose the correct answer:

Complete Course on Piping Engineering

Basics, Codes & Standards, Layout, Materials & Stress Analysis

Check Details

Steel Production Methods

There are three primary methods used to produce steel:

Blast Furnace-Basic Oxygen Furnace (BF-BOF)
Electric Arc Furnace (EAF)
Direct Reduction of Iron (DRI)

Each of these methods has its own carbon emission profile, energy consumption, and potential for decarbonization.

1. Blast Furnace-Basic Oxygen Furnace (BF-BOF)

Global Production Share: BF-BOF accounts for approximately 71% of global steel production.
Process Overview: In this method, iron ore is reduced to cast iron using coke in a blast furnace. The molten iron, also known as hot metal, is then processed in a basic oxygen furnace to convert it into steel.
Energy Usage: For every ton of crude steel produced through the BF-BOF route, around 21.4 GJ of final energy is consumed.
Carbon Emissions: This is the most carbon-intensive method, with emissions ranging from 1.7 to 2.2 tonnes of CO2 per ton of steel produced.

2. Electric Arc Furnace (EAF)

Global Production Share: EAFs contribute to around 24% of steel production globally.
Process Overview: In an EAF, steel scrap is melted using electricity. Additives are introduced to adjust the chemical composition of the molten steel, creating the desired steel grade.
Advantages: EAFs produce fewer carbon emissions compared to BF-BOF, mainly because the process relies on recycled scrap metal, which requires less energy to process than raw iron ore.

3. Direct Reduction of Iron (DRI)

Global Production Share: DRI, coupled with EAFs, accounts for about 5% of steel production.
Process Overview: In DRI, iron ore is reduced using syngas (a mixture of hydrogen and carbon monoxide) to produce iron without the need for a blast furnace. This iron is then processed in an EAF to create steel.
Hydrogen Usage: In 2020, about 4.3 million metric tons of hydrogen were used in DRI-EAF processes, demonstrating the growing role of hydrogen in steelmaking.
Energy Efficiency: The DRI-EAF method is more energy-efficient, consuming 17.1 GJ of final energy per ton of crude steel produced.

The Role of Green Hydrogen in Steelmaking

Green hydrogen, produced using renewable energy sources like wind or solar power, offers a cleaner alternative to traditional fossil fuels in the steel industry. Hydrogen can replace coke as a reducing agent in steel production, especially in the DRI process. This shift could significantly reduce the carbon footprint of steel manufacturing.

Green Steel: Hydrogen as a Reducing Agent

Green hydrogen has the potential to reduce emissions from the BF-BOF process by partially replacing coke in the blast furnace. Although hydrogen cannot entirely replace coke, it can significantly reduce the amount of coking coal required, cutting down emissions by up to 21%.

Carbon Capture and Storage (CCS)

In addition to hydrogen-based technologies, carbon capture and storage (CCS) will play a crucial role in decarbonizing BF-BOF processes. CCS involves capturing CO2 emissions from steel plants and storing them underground to prevent their release into the atmosphere.

Example: The only current steelmaking carbon capture utilization and storage (CCUS) unit is located in the UAE. This plant captures flue gas from a DRI-EAF facility and injects the CO2 into oil fields for enhanced oil recovery. The plant has the capacity to capture 0.8 million tonnes of CO2 per year.

Hydrogen-DRI Pilots and Investments

Several countries, including Belgium, France, Japan, and Sweden, are investing in hydrogen-DRI pilot projects. These projects are expected to reduce CO2 emissions by 0.022 million tonnes annually.

The Cost of Green Hydrogen and Its Impact on Steel Production

The widespread adoption of green hydrogen in the steel industry will depend on its cost competitiveness compared to traditional fuels like natural gas and coal.

Cost of Green Hydrogen: Currently, the price of green hydrogen ranges from USD 4 to 6 per kilogram, whereas grey hydrogen (produced from natural gas) costs between USD 1 and 2 per kilogram. As the scale of hydrogen production increases and technologies advance, the cost of green hydrogen is expected to decline.
Steel Price Implications: Green steel production requires 30-50% higher investment and operating costs compared to conventional methods. However, it consumes 15% less energy overall. Despite the higher initial costs, steel prices are expected to stabilize as economies of scale drive down hydrogen costs.

Global Steel Production and Emissions Reduction Goals

In 2020, global steel production reached 1.878 billion tonnes, with China accounting for half of this output. As the world transitions towards net-zero emissions, the steel industry must adopt more sustainable practices to meet its climate targets.

China’s Role: With China being the largest producer of steel, its adoption of green hydrogen technologies will be pivotal in reducing global carbon emissions.

Green Steel Initiatives Around the World

Several countries are leading the way in green steel production:

Sweden: The HYBRIT project aims to produce fossil-free steel by replacing coking coal with hydrogen in the DRI process.
Germany: Salzgitter AG is developing hydrogen-based steel production technologies as part of its SALCOS (Salzgitter Low CO2 Steelmaking) initiative.
United Arab Emirates: The UAE’s steel industry is pioneering CCUS technologies to reduce carbon emissions from DRI-EAF plants.

These initiatives demonstrate the growing commitment to decarbonizing steel production and transitioning towards a more sustainable future.

Benefits of Green Hydrogen in Steelmaking

Reduction in Carbon Emissions: Hydrogen-based steel production has the potential to significantly reduce CO2 emissions compared to traditional methods.
Energy Efficiency: Hydrogen-DRI is more energy-efficient than BF-BOF processes.
Sustainable Steel: The use of green hydrogen contributes to the production of sustainable steel, which is increasingly in demand from consumers and industries looking to reduce their carbon footprints.

How much do you know about Challenges

Challenges and Limitations of Green Hydrogen in Steel Production Quiz

1. What is one major financial challenge of adopting green hydrogen in steel production?

Choose the correct answer:

2. Why is energy intensity a challenge for green hydrogen in steel production?

Choose the correct answer:

3. What infrastructure challenge must be overcome for the widespread adoption of green hydrogen in the steel industry?

Choose the correct answer:

Challenges and Limitations of Green Hydrogen in Steel Production

Despite its potential, there are several challenges that must be addressed before green hydrogen can be widely adopted in the steel industry:

High Initial Costs: The investment required for hydrogen-based steel production is considerably higher than for conventional methods. This includes the cost of electrolyzers, which are essential for producing green hydrogen.
Energy Intensity: Although green hydrogen reduces CO2 emissions, it requires a large amount of renewable energy to produce. This energy demand may strain existing renewable energy capacity.
Infrastructure Development: The widespread adoption of hydrogen technologies will require the development of new infrastructure for hydrogen production, transportation, and storage.

Future Outlook for Green Hydrogen in the Steel Industry

The future of steel production lies in the adoption of cleaner, more sustainable technologies. Green hydrogen is set to play a key role in this transition. As the cost of hydrogen production decreases and new infrastructure is developed, the steel industry will increasingly rely on hydrogen as a fuel and reducing agent.

Countries with ambitious climate goals, such as those in the European Union, are expected to lead the way in adopting green hydrogen for steel production. Moreover, as more companies commit to reducing their carbon footprints, the demand for sustainable steel will continue to rise.

Table: Comparison of Steel Production Methods

Steelmaking Method	Energy Consumption (GJ/tonne)	CO2 Emissions (tonnes CO2/tonne steel)	Global Share of Production (%)
BF-BOF	21.4	1.7-2.2	71
EAF	Varies (based on electricity source)	0.3-0.4	24
DRI-EAF	17.1	0.6-1.1	5

Comparison Green Hydrogen in Steel Industry

FAQs

What is green hydrogen, and how does it help in steel production?
Green hydrogen is hydrogen produced using renewable energy sources. It can be used in steel production as a cleaner alternative to coke, significantly reducing carbon emissions.
Why is the BF-BOF method so carbon-intensive?
The BF-BOF method relies on coke, a carbon-rich material derived