Issue 49: Green steel
Or more greenwash?
Steelmaking is one of the largest contributors to global carbon emissions, accounting for approximately 11% of global greenhouse gas emissions.
So, what is Green Steel? Just more greenwash?
Rather, it’s an emerging process that isn’t yet up to the scale that the big steelmakers can adopt, but we need to continue to hold them to account.
How is steel made?
There are three main methods:
Blast Furnace. This method for making steel is to chuck iron ore, limestone, and coal that has been heated to drive off unwanted ingredients - called ‘coke’, it is almost pure carbon - into a very hot furnace and blast air into the mix (hence “Blast Furnace”). The coke burns (releasing CO2), the iron ore melts, and the limestone combines with impurities to be skimmed off (“slag”). The resultant iron is then further purified into steel, by blowing oxygen into the molten iron within a Basic Oxygen Furnace.
Electric arc. Another method is to recycle scrap steel into fresh steel in an Electric Arc Furnace, which is powered by heaps of electricity.
Direct reduced iron. This emerging method is to heat the iron ore enough to remove much of the oxygen and impurities. This Direct Reduced Iron can then be fed into an Electric Arc Furnace. This process uses gas rather than coal thereby reducing, but certainly not eliminating, CO2.
Whatever method, once the steel is solid, it is rolled and shaped into plates, coils and bars.
What do we need to do?
The ironmaking process alone is responsible for around two thirds of the carbon emissions from making steel. Using hydrogen instead of coal in the Blast Furnace would lead to a huge reduction.
Eliminating the ironmaking step by using an Electric Arc Furnace instead would also lead to a huge reduction. Currently around 70% of world steel production (World Steel Association 2021) uses a Blast Furnace, so we have a way to go.
Once more steel is made in an Electric Arc Furnace, we will need more Direct Reduced Iron, which we must then fuel with hydrogen instead of with gas.
So what’s stopping us?
It may not be a surprise…… but some steelmakers don’t want to change. Instead, they stubbornly look to Carbon Capture Utilisation and Storage (CCUS) to solve their carbon problem. ACCR writes that this is both expensive and unlikely to be effective. Meanwhile, the Institute for Energy Economics and Financial Analysis reports there are no commercial-scale CCUS plants for coal-based steelmaking anywhere in the world, with almost nothing in the pipeline.
Now is the time!
ACCR estimates that 71% of the world's steelmaking assets will reach the end of their operating lives by 2030. While they could be extended this for up to 20 years by relining coal-dependent blast furnaces, this shows there is a huge opportunity to transition to zero emission steel making.
So now is the time to invest in genuine green steel processes to prevent the lock-in of coal-based methods well beyond 2030!
Check out these good news green steel stories
New to the game, Sweden’s H2 Green Steel is the world leader. Construction of a completely CO2 emissions free plant using Direct Reduced Iron (reduced via hydrogen) and Electric Arc Furnace is well underway. The company hopes to roll out the first batches of steel by 2025.
French company Gravithy is also new to the game. Finance is in place for Gravithy to build and operate a DRI plant (using hydrogen) in France. Gravithy will then sell its DRI to steelmakers.
Global steelmaker, Sweden’s SSAB, has been producing and selling 100% fossil free steel produced from scrap in an Electric Arc Furnace using renewable electricity since 2021. In collaboration with LKAB (Sweden’s iron ore miner) and Vattenfall (Sweden’s electricity generator), SSAB has committed to building a new fossil-fuel free plant (DRI/EAF) and then closing its current coal-fed blast furnace.
German steelmaker ThyssenKrupp has begun construction on DRI plus Electric Arc Furnace, set to be operational by 2026 and aiming to run on 100% green hydrogen from 2029.
And in Australia?
Hmmm….. not much?
Port Kembla’s Bluescope is spending over $1 billion to reline its blast furnace, which may prolong carbon intensive ironmaking for up to another 20 years.
There is at least one piece of good news though: Australia’s other steelmaker, Liberty Steel in Whyalla, recently announced the phase out of coal-based steelmaking with the purchase of an Electric Arc Furnace, and has engaged suppliers to install a Direct Reduction Plant.
BHP Iron Ore built a Direct Reduced Iron plant in Port Hedland during the 1990’s, aiming to turn low value Iron Ore into Direct Reduced Iron. It was a fiendishly difficult project which ran late and over budget; and ultimately failed due to ongoing safety issues with the fiery production process.
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Clearly, coal is not essential for steelmaking. CO2-free iron and steel making may be complex; but it can be done. Customers are demanding it; we are demanding it.
Our climate depends on it.
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JFE Steel, a Japanese steelmaker, is considering a joint venture finance deal with Whitehaven Coal. Move Beyond Coal is hosting peaceful actions to encourage JFE to reject the deal. Get involved, or choose from our other actions listed below.
What can you do today?
🐝 If you have 5 minutes:
The Qld Government has just released the latest tree clearing figures. A whopping 323,676 hectares was bulldozed, the equivalent to 43,600 Suncorp Stadiums.
Action: The Qld Conservation Council is running a “Stand Up for Nature” Campaign, after the successful “Climate Action Now” campaign. Order a free “Stand Up for Nature” yard sign.
Last year, actions by you and 1000’s of others saw the Big Four banks update their climate policies to largely rule out direct funding of new coal projects. But they gave themselves some giant loopholes: general purpose corporate lending and bonds are being used as backdoor financing options for coal, oil and gas. Research by Market Forces has revealed the Big Four banks arranged $2.2 billion for fossil fuels through the bond market in 2023! 😡😡😡
Action: Send an email to the Big Four Banks to tell your bank to stop financing companies expanding coal, oil and gas!
Banks aren’t the only ones using loopholes: the ABC has revealed that AustralianSuper’s 'Socially Aware' option, which excludes investments in fossil fuel shares and corporate bonds, has still invested in fossil fuels, because it has no restrictions on property, infrastructure projects and direct loans to businesses.
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Action: Find out if your super fund is investing in coal, oil or gas. If you are with AustralianSuper, send them an email.
Our car-centric transport system is one of Australia’s biggest climate polluters and makes our streets congested, noisy, dirty and dangerous. We need better and cleaner transport choices.
Action: Email your State Transport Minister to tell them you want better access to shared and active transport, to get climate pollution and costs plummeting! (If, like me, you already have good access, the suggested email needs a few changes)
The Burrup Hub project is a $50bn Liquified Natural Gas (LNG) mega-project led by Woodside Energy, involving the development of two new giant offshore gas offshore from Northwest of Western Australia. The Burrup Hub would be the most polluting project ever to be developed in Australia.
Action: Add your voice to 430,000 who have already signed the Greenpeace petition.
💃🏽 If you have 30 minutes or more:
We’ve written lots about the review of our Nature Laws (the EPBC Act, see Issue 37: New Law in ‘24), to be discussed in Federal Parliament in mid August. The Mining Lobby is gearing up to oppose the Climate Trigger. A Climate Trigger would finally have coal and gas projects assessed for their impact on our climate.
Action: RSVP to a webinar hosted by Move Beyond Coal to build a four-week people-powered plan to win this vital law reform.
The Qld Conservation Council knows the best way to protect our incredible landscapes and wildlife is through strong laws and permanent habitat protection. The Stand up for Nature campaign will make sure those standing in October’s State Election receive the message.
Action: Come along to a Qld Conservation Council “Stand Up For Nature” Campaign Launch, to meet like minded people and find out how you can get involved.
The Federal Opposition is proposing to build nuclear reactors in Queensland at Tarong and Callide.
Action: RSVP to a webinar 6pm Tuesday July 30th to discuss the local impacts of potential nuclear reactors at Tarong and Callide.
💖 Out and about?
Head to Nerang Country Paradise on the Gold Coast on Sat 3rd or Sun 4th August for the Botanical Bazaar, the Gold Coast's Premier Gardening and Sustainable Living Festival. Make sure you visit the Gold Coast Climate Action Network stall.
Say hello to the newly opened Save Our Darling Downs Community Office at 66A Cunningham St, Dalby - just three doors down from the office of Arrow Energy, the company that wants to expand its Surat Gas Project on to priority agricultural land. Send the farmers involved a message of support!
My mate Jeremy has recently returned from an overseas trip, where he spent some time cycling in The Netherlands. Which reminded me of how ugly those wind turbines can be…. 😂 Here’s some photos I took in 2011.
Many thanks to Fiona from the Australasian Centre for Corporate Responsibility (ACCR) for permission to use the report “Forging pathways: insights for the green steel transformation”.
That’s all for today, folks 👋🏽 Thanks for taking action.
See you in two weeks, Ron
plus Malcolm, Robyn and Jan - The Climate Club Qld team
To help us keep these newsletters helpful, you can always reach us by email climateclubqld@gmail.com or check out the simple info on our About page.
We live, work and play on the lands of the Yuggara and Turrbal people in and around Meanjin - Brisbane. We pay respect to their Elders, past and present, and acknowledge that sovereignty was never ceded - always was, always will be Aboriginal land.
Thanks for the great intro/summary to greener steel and for the giggle re those ugly wind turbines :)