THE PARADOX OF GREEN STEEL
As the world makes progress toward the goal of long-term decarbonization, one product, in particular, will play an increasingly important role in building the infra-structure of that green future: steel. However, the make-over of the energy industry being so critical to that ideal, the importance of steel is rather ironic. Although the more than 300,000 miles of natural gas pipelines and more than 190,000 miles of oil pipelines in the U.S. are made with steel, steel also composes the 58,000 wind turbines generating renewable wind power throughout the U.S.
Moreover, that steel production itself is still a fairly emissions-heavy process begs the question of how the steel industry can reduce emissions as demand for the commodity is expected to rise. Indeed, the World Steel Association expects global demand for steel to grow by 20% by 2050, the year coincidentally targeted by many countries, including the U.S., for aggressive cuts in their greenhouse gas (GHG) emissions.
The steel industry does have a long record of focusing on environmental stewardship. Per World Steel Association data, the amount of energy used in steel production has been slashed by 60% over the last 50 years, and steel is the most recycled material in the world. In addition, approximately 90% of the water used by steel producers is cleaned and returned to source, often more sanitary than before.
Today, the steel industry operates at the limits of current science and technology. To meet GHG reduction commitments such as those in the Paris Climate Agreement, the industry will need new breakthroughs. If, in years to come, certain key developments, ranging from carbon capture to electrolysis and hydrogen-fueled electricity generation, bear fruit, steel will resolve its dichotomy and cease to be the mixed blessing that it has been.