EU Introduces Carbon Price for Steel, Swedish Startup Builds World's First 'Deep Green' Steel Plant
The European Union is introducing a carbon price of around €80 per ton for steel producers, aiming to curb emissions in the sector. Meanwhile, a Swedish startup, Stegra, is constructing the world's first 'deep green' steel plant, targeting five million tons of low-carbon steel annually by 2030.
Steel production contributes significantly to global greenhouse-gas emissions, with over 10% annually. Most emissions come from blast furnaces that use coal, which is still employed despite being uneconomical for power generation. Methane emissions from coalbed methane in the steel supply chain add around 25% to blast-furnace steel's climate footprint, equivalent to one billion tons of CO2 per year.
Recycling steel, which is 100% recyclable with over one-fifth of global supply derived from recycled scrap, requires only electricity, enabling a circular economy. However, the trend is concerning, with more than two traditional coal-powered steel plants planned for every new green steel plant under discussion.
The EU's carbon pricing initiative and Stegra's deep green steel plant are steps towards a greener future. However, the pace of transition is slow, with coal still dominant and new green projects outnumbered by traditional plants. The steel industry's significant emissions highlight the urgent need for further innovation and policy action.
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