CAN GREEN STEEL SAVE THE WORLD?

NOTE FROM THE EDITOR

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CAN GREEN STEEL SAVE THE WORLD?

We have steel to thank for underpinning so much of our lives from buildings and cars to jobs and growth, but we are now paying the environmental invoice for that progress thanks to global warming. Steel contributes 7% of all emissions, 3x more than planes.

Traditional steel made using coal produces 2T of CO2 for every 1T of steel

50% of these emissions come from coal-fueled furnaces used to produce iron, the main ingredient in steel. Coal is also used to chemically convert iron ore from mining into iron, producing Carbon Dioxide gas as a byproduct.

Steel contributes 7% of global CO2 emissions

More Carbon Dioxide is released while purifying the iron. Steelmakers use Limestone to remove sand impurities from the molten iron. The heated limestone breaks down into Calcium Oxide and Carbon Dioxide. The CO2 gas escapes into the atmosphere. Oxygen is then added to the molten iron to bind with and remove Carbon impurities, creating more Carbon Dioxide emissions.

Adding these emissions to those from diesel powered mining and transportation (excavators, trucks, trains, ships) and it is easy to see why steel is so problematic for our environment.

Recycling only solves half the problem

Recycled steel is much greener. The main ingredient, scrap steel, doesn't need refinement and lower process temperatures allow the substitution of coal furnaces with electric powered "arc" furnace technology.

We already recycle 80% of scrap metal....however even 100% recycling will meet less than half of global steel demand.

Green steel can reduce emissions by 95%

Green steel has been touted as a sustainable alternative. It uses a similar manufacturing process to the traditional steel, except:

1) The mining and transportation equipment use green electricity or green hydrogen instead of petrol or diesel.

2) Furnaces are powered by green electricity or green hydrogen instead of coal.

3) Steelmakers use green hydrogen instead of coal as the chemical agent to convert iron ore to iron.

Volvo is already using green steel

Volvo is already using green steel in it's vehicles and both BMW and Mercedes have invested in green steel technology. It won't be long before government infrastructure projects mandate green steel in construction to echo similar mandates already in place for using sustainable timber. Late adopters will then follow suit to comply with overwhelming client, investor and customer climate sentiment.

MYTH BUSTER

Myth: Water vapour from hydrogen fuel cell vehicles will increase global warming

Truth rating: 1/10

Water vapour is a technically a greenhouse gas, but unlike other greenhouse gases it self-regulates its levels in the atmosphere. The atmosphere's capacity to hold water vapour depends on temperature. Once a limit is reached any additional water vapour simply condenses and rains back down to earth, meaning it can't increase global warming, unlike other greenhouse gasses which continuously accumulate and to increase global warming.

NEWS

USA pass $3/kg subsidy for green hydrogen into law

The USA passed the Inflation Reduction Act into law earlier this week. It included significant climate incentives including a $7,500 tax credit on new hydrogen fuel cell vehicles (eg Toyota Mirai), $40bn in credits for manufacturing and construction of renewables infrastructure such as solar and wind farms and a direct $3 credit for every kg of green hydrogen. Lowering the cost of energy together with the subsidy could make green hydrogen made from water cheaper than dirty hydrogen made from gas.

Bosch to invest $1.3bn in Green Hydrogen Tech. by 2025

The world's largest automotive supplier is aiming to install 4000 hydrogen refuel stations globally and is investing heavily in technology to enable it to supply components to hydrogen fuel cell vehicle sector, as it bets on green hydrogen to replace diesel as the commercial vehicle fuel of choice.