[ TECHNOLOGY ] efficiency of conventional BF- BOF processes , using biomass as a reducing agent , and increasing the share of scrapbased EAFs are some of the approaches being explored . In the BF-BOF process , energy efficiency can be enhanced by charging the furnace with a mixture of fine iron ore and carbonaceous materials , optimizing the burden mix , and increasing the injection of pulverized coal , natural gas , heavy fuel oil , plastic waste , biomass , hydrogen , and even coke oven and BOF gas . These measures would optimize coal / coke consumption , reduce energy use , and enhance sustainability . Adopting the best available technology ( BAT ) in conventional BF-BOF processes has the potential to reduce CO2 emissions by up to 25 %.
Biomass , derived from waste or purpose-grown plant materials , can also serve as an alternative reducing agent or fuel in both the BF-BOF and EAF routes , significantly reducing emissions . However , the availability of biomass is region-specific , making large-scale steel production using biomass less feasible on a global level .
Challenges of sustainable steel production
The global steel industry is currently grappling with the challenge of reducing carbon footprints and improving energy efficiency using conventional methods . Green steel , which is critical to sustainable development , can significantly reduce carbon emissions and accelerate global efforts to mitigate climate change . However , several barriers stand in the way of decarbonization initiatives within the steel sector .
The most significant barrier is the lack of policies and regulatory frameworks that define green steel , establish global green steel standards , and offer incentives to promote its production . Without these , it is difficult to foster fair competition among steel producers globally . Another challenge is the lack of affordable green electricity and green hydrogen , which hampers green steel production through both the BF-BOF and DRI-EAF processes . Currently , the cost of green hydrogen produced via electrolysis is between US $ 4-6 per kilogram , compared to the US $ 1.8 per kilogram cost of grey hydrogen . This price difference makes it difficult for green hydrogen to compete with grey or brown hydrogen .
Transitioning to the DRI-EAF production route also faces challenges in accessing the necessary raw materials , such as high-grade iron ore and steel scrap . Approximately two-thirds of the global iron ore supply is unsuitable for this process , and a shortage of steel scrap , compounded by export restrictions in many countries , is further hindering efforts to decarbonize steel production .
Carbon capture , utilization , and storage ( CCUS ) technologies face their own set of challenges , including high capital costs , lack of sufficient data to prove their viability in reducing emissions , and limited use cases that make scaling up the technology difficult . Additionally , there is insufficient data on the availability and capacity of potential geological storage sites for captured carbon .
Other hurdles slowing decarbonization efforts include a shortage of skilled workers to support the transition across the steel value chain , limited availability of capital to invest in decarbonization solutions , and uncertainty about whether there will be sufficient longterm demand for green steel at premium prices .
Overcoming the challenges of decarbonization
To overcome these challenges , there is an urgent need to establish global green steel standards and regulatory norms . This would provide clarity on the classification of green and low-carbon steel , helping to distinguish between different types of steel . Government policy support can also play a critical role by
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