The green steel transition is set to change the value chain in the steel and metallurgical industry. The change is expected to be a gradual one, with a phase-in of green steel facilities starting in the most advanced economies.
The speed of the green steel build-out may be
likened to the advent of solar photovoltaic power. Solar power formed an
increasing part of the world’s energy mix since its widespread introduction in
the 1980s.
However, although solar’s share of the global electricity mix has
been steadily increasing, coal demand has not decreased. This is because the
absolute size of the global electricity market increased, resulting in an
increase in absolute coal demand.
In a similar vein, the realisation of green steel
is expected to be a development that unfolds over many decades. Both green
steel and blast furnace capacity is expected to grow, and although blast
furnace operations’ share of the industry will undergo a decline, actual output
from blast furnaces will grow.
The
Challenges