[ TECHNOLOGY ]
The commitment of steel manufacturers to technology transformation — whether for part or all of their production capacity in a phased manner — will also be essential .
creating widespread demand for green steel . This can be achieved through incentives that lower the cost of green steel production , encouraging private sector companies to invest in it . Governments and public sector companies could also be mandated to purchase a certain quantity of green steel .
A comprehensive policy framework that creates demand for green steel across various end-user industries is essential . One potential solution is the issuance of green steel certificates , which could incentivize the purchase of green steel . These certificates could be traded in carbon markets , providing financial benefits to purchasers of green steel .
Regulations related to carbon pricing would also help accelerate investments in green steel production and the transition to hydrogen-based steelmaking . According to a report from the Institute for Energy Economics and Financial Analysis ( IEEFA ), a carbon penalty of US $ 50 per ton of emissions could make green steel competitive by 2030 and serve as a catalyst for a shift to hydrogen-fueled steelmaking .
Enhancing the availability of steel scrap through the implementation of a steel scrap recycling policy could promote a circular economy within the steel sector . This should include the development of end-of-life vehicle scrapping facilities , improving the domestic availability of steel scrap and reducing reliance on coal in the steel manufacturing process . Countries with limited steel scrap , such as India , would benefit by reducing their dependence on scrap imports , facilitating the production of eco-friendly steel .
Replacing fossil fuel-based electricity with renewable energy could significantly reduce carbon emissions in the steel industry . Therefore , the use of renewable energy in steel production should be made
32 Green Steel World | Issue 15 | November 2024