Net Zero Industry Tracker 2024

Technology pathway 1: Increased use of scrap The increased use of scrap is an important decarbonization lever for steel production, since scrap-based (secondary) production through the scrap-EAF process currently emits less than one- third of emissions compared to primary production through the BF-BOF process. This is because it eliminates the need for the processing of iron-ore, which is an emissions-intensive step. Furthermore, if renewable energy is used in the scrap-EAF process, the emissions from this process can be lowered to near-zero levels. The IEA projects that the share of scrap in metallic inputs for steel production will reach 48% by 2050. Technology pathway 2: Clean hydrogen-based primary production One of the most promising developments in steelmaking technology is the use of hydrogen-based direct reduced iron (DRI with H2) production, which emits water vapor instead of CO2, instead of traditional blast furnaces. Several pilot projects, particularly in Europe (e.g. Sweden’s HYBRIT project), are exploring this technology with the aim of achieving large-scale commercial viability in the coming years. Technology pathway 3: CCUS technology for primary production The adoption of CCUS in the BF-BOF process is expected to reduce CO2e emissions by up to 90%.314 Most CCUS technologies for steel production are expected to become commercially available after 2028. Another key technology that has seen progress recently is the injection of biomass in place of coal in the blast furnace, which, when coupled with CCS, can lead to further emissions reduction. The use of CCUS is expected to reduce steel emissions by 13% by 2050. Net-Zero Industry Tracker: 2024 Edition 79