Net Zero Industry Tracker 2024 Steel

Demand STEEL Currently, less than 1% of steel meets the industry’s net-zero thresholds. The estimated B2B green premium of steel remains high, at 40%, but is expected to fall by 2050 with the drop in energy prices for renewable energy and hydrogen. The demand for low-emission steel is expected to increase, especially from the automotive industry, since the B2C green premium for cars is less than 1%. Many companies (including BMW, Volkswagen and Volvo) have announced plans to use low- emission steel in the production of EVs. There has also been an increase in green steel supply agreements announced, with the transport sector constituting nearly half of them. The most prominent of these agreements are Volvo Trucks’ purchase of SSAB’s first batch of fossil-free steel and the Mercedes Benz agreement with Stegra (formerly known as H2 Green Steel) for 50,000 tonnes of steel made with hydrogen.316 Access to scrap steel is not evenly distributed globally, and hence poses a challenge in increasing share of secondary steel production. There is a need to improve supply chain efficiency to ensure consistent flow of recyclable materials. To further reduce emissions, steel producers should adopt a circular economy model and recycle and reuse their steel scrap to increase secondary steel production. Top countries/regions in steel production and demand FIGURE 45 Source: World Steel.Percentage of overall production 1 China 54% 2 Europe 7% 3 India 7% 4 North America 6% 5 Japan 5%Percentage of overall demand (2022) 1 China 52% 2 Europe 8% 3 North America 8% 4 India 6% 5 Japan 3% 9 Net-Zero Industry Tracker: 2024 Edition