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Researched by Industrial Info Resources (Sugar Land, Texas)--Decarbonizing the global iron ore and steel industry by 2050 will require US$1.4 trillion in capital investment--most of which would be needed to decarbonize the steelmaking process--according to Wood Mackenzie (Edinburgh, U.K.).
According to the consultant group's September research report, titled "Pedal to the metal: Iron and steel's $1.4 trillion shot at decarbonisation," 2.2 billion tons of steel will need to be produced to meet global demand by 2050. The analysis notes the process from iron ore mining to steel manufacturing is "highly carbon intensive," emitting 3.4 billion tons of carbon per year, equal to 7% of global emissions.
The forecasted $1.4 trillion in spending is broken out into three areas:
"Ultimately, the industry must pursue a complete switchover from predominantly hydrocarbon-based energy to renewable power along the value chain, from mining to steelmaking. In parallel, the industry needs to increase its use of less carbon-emissive feedstock, such as green hydrogen and scrap, in steelmaking."
Steelmaker ArcelorMittal (NYSE:MT) (Luxembourg, Luxembourg) is planning a direct reduced iron (DRI) plant addition at its existing steel mill in Hamburg, Germany, to use hydrogen instead of natural gas in the iron ore reduction process. The goal is to produce 100,000 tonnes of sponge iron per year for steel production. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for the detailed project report.
United States Steel Corporation (U.S. Steel) (NYSE:X) (Pittsburgh, Pennsylvania) is at work on adding a new US$3 billion steel minimill in Osceola, Arkansas. The mill, which is expected to rely in part on renewable energy from Entergy Arkansas Incorporated (NYSE:EAI) (Little Rock, Arkansas), will include two EAFs with 3 million tons per year of steelmaking capability, an endless casting and rolling line and advanced finishing capabilities, as well as technology for steelmaking and finishing that will support the company's effort to reduce its greenhouse gas (GHG) emissions by 20% by 2030. The project is expected to wrap up in late 2024. According to a recent U.S. Steel press release, the mill "is expected to operate with up to 70-80% fewer greenhouse gas emissions compared to the traditional integrated steelmaking approach."
The company also is planning an identical steel minimill in Brownsville, Texas. Subscribers can see detailed reports for the Osceola and Brownsville projects.
In Spain, Iberdrola (Bilbao) is teaming up with H2 Green Steel (Stockholm, Sweden) to build a US$1.5 billion "zero-carbon" steel mill, which will utilize a green hydrogen-powered EAF, fueled by DRI, to produce around 2 million tons per year of green steel. The project is expected to kick off in June 2024, with completion two years later. The green hydrogen will be supplied from a nearby plant, which is also planned for construction along the same timeline. Subscribers can click here for related project reports.
Other measures such as carbon capture storage (CCS) and CCUS can further reduce emissions in the steel and iron industry, which according to the report, will need to capture and store 470 million tonnes of carbon to reach net-zero emissions by 2050. In Russia, United Metallurgical Company (OMK) (Moscow) is at work on constructing a DRI unit addition with CCS technology at its Vyksa Steel Pipe & Tubing Works. Click here for the project report.
The largest steel supplier for the U.S. automotive market, Cleveland-Cliffs Incorporated (NYSE:CLF) (Cleveland, Ohio), is at work on a CCS project at its Burns Harbor Steel Works in Indiana. The project entails completing the initial engineering design for a system capable of capturing 50% to 70% of carbon dioxide (CO2) emissions from the blast furnace gas at the site--up to 2 million tons of CO2 per year.
The first step in the value chain is iron ore mining. Malan Wu, research director at Wood Mackenzie and lead author of the report, said: "Mining companies will need to play an active role in cutting their operational emissions as well as invest in new high-grade mines and green pellet capacities to feed green steel. In turn, this will require five times the current supply of high-grade pellet feed, an equivalent to 750 million tonnes, translating into an investment of US$250-300 billion."
According to Joe Govreau, Industrial Info's vice president of research for the Metals & Minerals Industry, the energy transition is providing a source of growth for the global mining sector. For more information, see Industrial Info's July 14, 2022, article - Global Mining Activity Remains Strong in Face of Changes.
Subscribers can click here for all project reports mentioned in this article and click here for related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
According to the consultant group's September research report, titled "Pedal to the metal: Iron and steel's $1.4 trillion shot at decarbonisation," 2.2 billion tons of steel will need to be produced to meet global demand by 2050. The analysis notes the process from iron ore mining to steel manufacturing is "highly carbon intensive," emitting 3.4 billion tons of carbon per year, equal to 7% of global emissions.
The forecasted $1.4 trillion in spending is broken out into three areas:
- US$800 billion-900 billion to decarbonize steelmaking infrastructure, including direct reduced iron (DRI) and electric arc furnaces (EAFs)
- US$250 billion-300 billion for mining companies to cut operating emissions and invest in high-grade mines and increase capacity for direct reduced (DR)-grade iron-ore pellets
- US$200 billion-250 billion in carbon capture utilization and storage (CCUS)
"Ultimately, the industry must pursue a complete switchover from predominantly hydrocarbon-based energy to renewable power along the value chain, from mining to steelmaking. In parallel, the industry needs to increase its use of less carbon-emissive feedstock, such as green hydrogen and scrap, in steelmaking."
Steelmaker ArcelorMittal (NYSE:MT) (Luxembourg, Luxembourg) is planning a direct reduced iron (DRI) plant addition at its existing steel mill in Hamburg, Germany, to use hydrogen instead of natural gas in the iron ore reduction process. The goal is to produce 100,000 tonnes of sponge iron per year for steel production. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for the detailed project report.
United States Steel Corporation (U.S. Steel) (NYSE:X) (Pittsburgh, Pennsylvania) is at work on adding a new US$3 billion steel minimill in Osceola, Arkansas. The mill, which is expected to rely in part on renewable energy from Entergy Arkansas Incorporated (NYSE:EAI) (Little Rock, Arkansas), will include two EAFs with 3 million tons per year of steelmaking capability, an endless casting and rolling line and advanced finishing capabilities, as well as technology for steelmaking and finishing that will support the company's effort to reduce its greenhouse gas (GHG) emissions by 20% by 2030. The project is expected to wrap up in late 2024. According to a recent U.S. Steel press release, the mill "is expected to operate with up to 70-80% fewer greenhouse gas emissions compared to the traditional integrated steelmaking approach."
The company also is planning an identical steel minimill in Brownsville, Texas. Subscribers can see detailed reports for the Osceola and Brownsville projects.
In Spain, Iberdrola (Bilbao) is teaming up with H2 Green Steel (Stockholm, Sweden) to build a US$1.5 billion "zero-carbon" steel mill, which will utilize a green hydrogen-powered EAF, fueled by DRI, to produce around 2 million tons per year of green steel. The project is expected to kick off in June 2024, with completion two years later. The green hydrogen will be supplied from a nearby plant, which is also planned for construction along the same timeline. Subscribers can click here for related project reports.
Other measures such as carbon capture storage (CCS) and CCUS can further reduce emissions in the steel and iron industry, which according to the report, will need to capture and store 470 million tonnes of carbon to reach net-zero emissions by 2050. In Russia, United Metallurgical Company (OMK) (Moscow) is at work on constructing a DRI unit addition with CCS technology at its Vyksa Steel Pipe & Tubing Works. Click here for the project report.
The largest steel supplier for the U.S. automotive market, Cleveland-Cliffs Incorporated (NYSE:CLF) (Cleveland, Ohio), is at work on a CCS project at its Burns Harbor Steel Works in Indiana. The project entails completing the initial engineering design for a system capable of capturing 50% to 70% of carbon dioxide (CO2) emissions from the blast furnace gas at the site--up to 2 million tons of CO2 per year.
The first step in the value chain is iron ore mining. Malan Wu, research director at Wood Mackenzie and lead author of the report, said: "Mining companies will need to play an active role in cutting their operational emissions as well as invest in new high-grade mines and green pellet capacities to feed green steel. In turn, this will require five times the current supply of high-grade pellet feed, an equivalent to 750 million tonnes, translating into an investment of US$250-300 billion."
According to Joe Govreau, Industrial Info's vice president of research for the Metals & Minerals Industry, the energy transition is providing a source of growth for the global mining sector. For more information, see Industrial Info's July 14, 2022, article - Global Mining Activity Remains Strong in Face of Changes.
Subscribers can click here for all project reports mentioned in this article and click here for related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
