Scotland-based energy research and consultancy company Wood Mackenzie has stated in its latest report that steelmaking’s transition to more sustainable processes will be crucial to driving down global emissions. However, current commercially viable technologies may require significant advancements.
Looking at the potential routes to low-carbon steelmaking, Wood Mackenzie stated that combining green hydrogen with direct reduced iron (DRI), which stands out as a preferred route to low-carbon steelmaking for many, is the route closest to carbon neutrality, via the use of green hydrogen instead of natural gas or coal. As a result, DRI’s share in the metallic mix is projected to more than double by 2050. Noting that the electric smelting furnace-basic oxygen furnace (ESF-BOF) process, which utilizes electricity, instead of coal/coke and offers steelmakers greater flexibility, is another potential solution that could bridge the gap between existing electric arc furnace (EAF) and blast furnace-basic oxygen furnace (BF-BOF) technologies.
The company stated that the DRI-ESF-BOF route could reach near cost parity with the traditional DRI-EAF route over the long term. In some cases, it could even be cheaper, depending on regional dynamics and whether the fuel feedstock used is natural gas or hydrogen.