Green steel is forecast to comprise up to 50% of global steel production by 2050. In recent years, a growing number of steelmakers have released their own brand of green steel as a marketing positioning tool with the potential to capture the green steel premium.
Some of these include Verdex® (United States Steel), Bluemint® Steel (Thyssenkrupp), Greenate™ (POSCO), ECONIQ™ Steel (Nucor) and JGreeX™ (JFE Steel).
SSAB expects the gross premium on steel, with close to zero carbon intensity, to attract a premium of around US$325/t, by 2026. This is in line with the full implementation of the EU’s carbon border adjustment mechanism (CBAM).
New steel industry player, H2 Green Steel, anticipate a green steel premium of around 25%. Utilising the ‘mass balance approach’, JFE Steel currently receives a 40% green steel premium on its JGreeX™ branding steel.Green steel offtake agreements have grown in
popularity in recent times, with automotive manufactures like Volvo and BMW committing to purchasing agreements with H2
Green Steel, SSAB and HBIS for green steel and low-emissions steel.