Issues » Climate and energy » Map of key low-CO2 emissions projects in the EU steel industry
Low-CO2 emissions projects in the EU steel industry
Maps of key low-carbon steel projects
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Use of hydrogen as a 100 % fuel source at our Rolling mill.
STARTING YEAR:
Before 2030
HYBRIT (LKAB, SSAB and Vattenfall) demonstration plant for fossil-free hydrogen production and H2 reduced iron sponge production (1.3 million tonnes).
STARTING YEAR:
Before 2030
Transition, based on HYBRIT technology, from blast furnace to mini-mills, with electric arc furnaces and rolling mills.
STARTING YEAR:
Before 2030
Transition, based on HYBRIT technology, from blast furnace to electric arc furnace.
STARTING YEAR:
Before 2030
IPCEI project for industrial demonstration of hydrogen production, hydrogen-gas heating of pelletizing plants, direct reduction of iron and use of hydrogen in production of fertilizers and REE concentrate
STARTING YEAR:
Before 2030
THE HYBRIT INITIATIVE - H2 direct reduction pilot plant and hydrogen storage pilot (SSAB) / Luleå
SSAB, LKAB and Vattenfall have started HYBRIT (Hydrogen Breakthrough Ironmaking Technology) to develop a fossil-free value chain for iron and steel production using fossil-free electricity and hydrogen.
Pilot plant for hydrogen production and direct reduction in operation. In June 2021, the three companies were able to showcase the world’s first hydrogen-reduced sponge iron produced at HYBRIT’s pilot plant in Luleå.
This first sponge iron has since been used to produce the first steel made with this breakthrough technology.
Hydrogen storage pilot to be operational in 2022.
STARTING YEAR:
Before 2030
Improved circularity of steel (ICOS)
Establishing a cost-efficient way of removing Cu from scrap when refining steel
STARTING YEAR:
Before 2030
On-site electrolysis for heating steel (On-Site EFHS)
Proving a world-leading cost-efficiency in eliminating CO2 when heating steel for hot-forming. Showing the way for world-leading cost-efficiency in refuelling of fuel cell based long haul trucking. Proving true electricity flexibilty with regulations possible down to 1 second intervals.
STARTING YEAR:
Before 2030
Biomass gasification for reduction of renewable fuels in steel industry
Replacement of fossil coal with renewable coal
STARTING YEAR:
Before 2030
Waste heat and CO2 for food production in green houses
STARTING YEAR:
Before 2030
Implement innovative DRI route to reduce carbon footprint
STARTING YEAR:
Before 2030
Implement innovative DRI route to reduce carbon footprint
STARTING YEAR:
before 2030
SALCOS - Salzgitter Low CO2 Steelmaking:
Direct avoidance of CO2 formation in metallurgical processes by the replacement of carbon by (electrolytically produced) hydrogen as reducing agent in iron ore reduction. Use of already established (direct reduction plant (DRP) with natural gas), electric arc furnace (EAF) and novel (hydrogen production and DRP-EAF integration into existing plant) technologies is leading to a gradual reduction of CO2 emissions up to 95% already in 2033. Step I, the replacement of one blast furnace with one direct reduction plant, one electric arc furnace and an electrolyzer, leads to a CO2 reduction of 30 % compared to conventional route in Salzgitter and can start operation already in early 2026 (>2 Mio t CO2/a).
STARTING YEAR:
Before 2030
Direct avoidance of CO2 formation in metallurgical processes by the replacement of carbon by (electrolytically produced) hydrogen as reducing agent in iron ore reduction. Use of already established (direct reduction plant (DRP) with natural gas), electric arc furnace (EAF) and novel (hydrogen production and DRP-EAF integration into existing plant) technologies is leading to a gradual reduction of CO2 emissions up to 95%. Stage I, the replacement of one blast furnace with one direct reduction plant, one electric arc furnace and an electrolyzer, leads to a CO2 reduction of 30 % compared to conventional route in Salzgitter and can start operation already in 2026 (>2 Mio t CO2/a).
Unlike the SALCOS project, the DRP is to be built in a coastal location close to offshore wind capacity and proximity to a deep-sea port.
STARTING YEAR:
Before 2030
Implement innovative DRI route to reduce carbon footprint
STARTING YEAR:
Before 2030
Stepwise sustainable transformation from conventional Blast Furnace / Basic Oxygen Furnace steelmaking to hydrogen-based Direct Reduction Plant / Electric Arc Furnace steelmaking, with view of at least 30% CO2 emissions reduction by 2025 (compared to 2014) and ultimately achieving climate neutrality by 2045.
STARTING YEAR:
Before 2030
1st direct reduction plant with Melting Unit
STARTING YEAR:
Before 2030
2nd direct reduction plant with Melting Unit
STARTING YEAR:
Before 2030
3rd direct reduction plant with Melting Unit
STARTING YEAR:
Before 2030
4th direct reduction plant with Melting Unit
STARTING YEAR:
Before 2030
Conversion of metallurgical gases into valuable base chemicals (Large scale production)
STARTING YEAR:
before 2030
Stepwise integration of the new technology / substitution of Blast Furnace
STARTING YEAR:
Before 2030
Development and implementation of novel structure of EAF
STARTING YEAR:
Before 2030
Project oriented on postscrap organic waste depolymerization toward production or recycled naptha for chemical synthesis
STARTING YEAR:
Before 2030
Development of renewable energy installation in form of photovoltaic and wind farms
STARTING YEAR:
Before 2030
Implement innovative DRI and EAF route to reduce carbon footprint
STARTING YEAR:
Before 2030
Replacement of the four existing tandem furnaces with two hybrid furnaces which will allow the facility to vary the mix of liquid metal and steel scrap used in the steel making process.
STARTING YEAR:
Before 2030
Partial transformation of steel production towards a scrap-based EAF route with a significant decrease in fossil fuel use, energy and emission intensity, while maintaining quality.
STARTING YEAR:
-
Combination of Electric Arc Furnaces (EAF), Blast Furnaces /Basic Oxygen Furnaces (BF/BOF, “integrated steelmaking”) and direct reduction (DR) technologies
STARTING YEAR:
Before 2030
Reheating furnace for the subsequent lamination treatments
STARTING YEAR:
Before 2030
Use of H2 for substitution of CH4 in Reheating Furnaces for billets
STARTING YEAR:
Before 2030
Dalmine Zero Emissions project aims to replace natural gas with green hydrogen in the whole finished steel pipes production cycle, from Electric Arc Furnace (EAF) steelmaking to heat treatment processes at Dalmine plant. The target is the decarbonization of the site. Hydrogen will be locally produced by an onsite electrolysis plant powered by renewable electricity
STARTING YEAR:
Before 2030
HYDRA-ITALIA - Linea 3: Electric furnace for melting the pre-reduced product obtained from direct reduction
STARTING YEAR:
before 2030
HYDRA-ITALIA - Linea 2: innovative direct reduction pilot plant powered by hydrogen
STARTING YEAR:
before 2030
HYDRA-ITALIA - Linea 1: integrated infrastructural system for the supply of green hydrogen.
STARTING YEAR:
before 2030
Combination of Direct Reduction Plant (DRP) and Smelter.
STARTING YEAR:
Before 2030
Innovative Ironmaking technology.
STARTING YEAR:
Before 2030
Implement all available KETs to decarbonize BF route
STARTING YEAR:
Before 2030
Implement innovative DRI route to reduce carbon footprint
STARTING YEAR:
Before 2030
Use internal CO2 to produce fuels based on innovative solutions
STARTING YEAR:
Before 2030
Use CCS solutions to sequestrate CO2
STARTING YEAR:
before 2030
Implement all available KETs to decarbonize BF route
STARTING YEAR:
Before 2030
Implement innovative DRI route to reduce carbon footprint
STARTING YEAR:
Before 2030
Implement CCS solutions to sequestrate CO2
STARTING YEAR:
before 2030
Implement innovative DRI & EAF route to reduce carbon footprint
STARTING YEAR:
Before 2030
Use circular economy solutions for decarbonization
STARTING YEAR:
before 2030
Use green electricity, green DRI and fossil free fuel to produce steel in EAF route
STARTING YEAR:
Before 2030
Heat recovery and storage system for steam generation (HRSSFSG):
The main objective of the project is the recovery and storage of residual heat for its usage within the factory processes through the production of steam.
STARTING YEAR:
Before 2030
Circularity of industrial wastes (CIW):
The main objective is the reuse and valorization of waste derived from industrial processes.
STARTING YEAR:
Before 2030
Replacement of gas furnaces with induction furnaces (ROGFWIF)
Increasing productivity, optimizing consumption and reducing carbon footprint Installation of high-efficiency induction furnaces
STARTING YEAR:
Before 2030
Replacement of steam boilers with electric motors (ROSBWEM)
Reduction of fossil fuel consumption and increase in energy efficiency
STARTING YEAR:
Before 2030
Improving energy efficiency and CO2 emissions in the rolling mill by means of electrification and substitution of natural gas burners, and digitalization and integration of the furnace managment.
STARTING YEAR:
Before 2030
The project aims to minimise the consumption of resources with high carbon footprint.
STARTING YEAR:
Before 2030
The project aims to close the loop of the Steelmaking by products aplying CIRC principles.
STARTING YEAR:
Before 2030
The project aims to minimise the indirect and direct CO2 emisions
STARTING YEAR:
Before 2030
Decarbonisation (CDA) in the integral production of stainless steel (DIPSS):
Currently there are a number of processes in an integral stainless steel factory in which natural gas (NG) is used as fuel. The project aims to increase gradually the partial replacement of NG by green hydrogen (GH2)
Currently, 0% NG has been replaced by GH2.
By 2025, 12% of NG consumption is expected to be replaced by GH2.
It is intended that, by 2030, a 30% replacement of NG by GH2 will be achieved.
STARTING YEAR:
Before 2030
Implement EAF route to reduce carbon footprint
STARTING YEAR:
Before 2030
Development of DRI plant with intergrated EAF
STARTING YEAR:
Before 2030
The European steel industry is on an ambitious path to cut carbon emissions by 55% by 2030 compared to 1990 levels (equivalent to over -30% compared to 2018 levels), and to achieve climate neutrality by 2050.
The above map shows examples of key low-CO2 projects that can help to achieve a substantial reduction of CO2 emissions in the EU steel industry. These projects (currently 60, but numbers grow by the month) will almost all start before 2030 and have the potential of reducing CO2 emissions by 81.5 million tons per year by 2030. This is equivalent to a cut of more than 1/3 of direct and indirect CO2 emissions of the European steel industry in just eight years from now, in line with the EU climate targets.
All these projects have a Technology Readiness Level (TRL) of at least 7 out of 9.
The financial needs until 2030 are estimated today at €31 billion for capital expenditures (CAPEX) and €54 billion for operating expenditures (OPEX), totalling €85 billion.
The successful transition of the EU steel industry towards CO2 neutrality by 2050 depends on the availability of cost competitive low-CO2 energy carriers (especially electricity and hydrogen) and related infrastructure (including for CO2 transport and storage).
The above projects will require annually about 75 TWh electricity for the operation of steel processes and about 2.12 million tonnes of hydrogen (corresponding to about 90 TWh of electricity, if this hydrogen is produced via water electrolysis), which means in total about 165 TWh of decarbonised electricity by 2030. This is the equivalent of the double of Belgium's yearly consumption.
This corresponds also to an increase of 100% of today’s electricity consumption of the EU steel industry. Currently, the EU steel industry consumes annually about 75 TWh of electricity, which are partly purchased from the external grid and partly self-generated through gas power plants using process gases of the steel industry as well as through top-gas recovery turbines.
The steel sector is at highest risk of carbon leakage and the most impacted by unilateral climate policy among energy intensive industries[1]. In this context, ensuring a level playing field with third country competitors is essential for the transition to climate neutrality of this sector; the success of the above low-CO2 steel projects and their envisaged emissions reduction require a supportive legislative framework that effectively addresses carbon leakage both during and after their implementation.
EUROFER will regularly update the projects map, taking into account ongoing developments.
[1] European Commission, In-Depth Analysis in Support of the Commission Communication COM(2018) 773 “A Clean Planet for all - A European long-term strategic vision for a prosperous, modern, competitive and climate neutral economy” page 221
Brussels, 12 November 2024 - Ahead of Commissioner-Designate Séjourné’s hearing in the European Parliament, European steel social partners, supported by cross-party MEPs, jointly call for an EU Steel Action Plan to restore steel’s competitiveness, and save its green transition as well as steelworkers’ jobs across Europe.
Open Letter to the Heads of State and Government of the Member States of the European Union
Brussels, 10 September 2024 – The Draghi Report thoroughly identifies the bottlenecks to both the EU industry's decarbonisation and competitiveness. The proposed recommendations for energy-intensive industries, including on energy, trade, carbon leakage, financing and lead markets, should be integrated into the upcoming Clean Industrial Deal and implemented with concrete measures as a matter of urgency. Alignment across different policies is crucial, and should be accompanied by sector-specific initiatives to enable the transition of each industry including steel, asks the European Steel Association.