� INTERVIEW � bridges to wind turbines relies on it . However , the industry faces major challenges due to its carbon- and energyintensive nature , which has limited investment in some regions . While the pathways to decarbonize steel are understood , the challenge lies in securing the necessary investments and renewable energy supplies . For example , the availability of low-cost green hydrogen and renewable energy varies by region , and many steel producers need government support to make the transition feasible . Schneider Electric ’ s role is to optimize their operations — whether it is a new project or upgrading an existing facility — to improve their business case and ease the transition to green steel .
GSW : What are the key obstacles slowing down the transition to green steel ?
AR : The biggest challenge is securing the large investments required to modernize the industry . Another key hurdle is access to renewable energy or green hydrogen at competitive prices , which is vital for lowering emissions . In regions like Germany , for instance , the limited availability of affordable green hydrogen is a significant bottleneck . These external factors are why many steel producers rely on government subsidies to bridge the gap between traditional and green steel production .
Schneider has been a leader in power distribution for decades , whether in homes , businesses , or industrial settings like steel mills . Photo : Schneider Electric
GSW : Schneider Electric has committed to sourcing low-carbon steel and responsible sourcing . How do you demonstrate this commitment through partnerships ?
AR : We are deeply committed to responsible sourcing and have partnered with companies like Glencore for sustainably produced copper and ArcelorMittal for X-Carb lowcarbon steel . These partnerships show our dedication to supporting the energy transition and ensuring that our sourcing practices align with our sustainability goals .
GSW : Speaking of sourcing , can you elaborate on the importance of traceability in the supply chain ?
AR : Traceability is critical , especially when it comes to responsible sourcing . Achieving proper traceability requires digitization . By digitizing the supply chain , we can create a " digital passport " for products , tracking their journey from raw materials to the end customer . This transparency is key for companies to meet regulatory standards and fulfill customer expectations for sustainability . We are working on solutions that enable companies to fully digitize and track their products throughout the supply chain .
GSW : Before we conclude , is there anything else you would like to highlight about Schneider Electric ’ s mission or technology ?
AR : I would like to emphasize the strong ethical foundation that guides Schneider Electric . We are committed to helping industries decarbonize and operate more sustainably . What excites me is seeing real progress in industries like mining and steel , where companies are starting to take meaningful steps toward decarbonization . Ultimately , we are well-positioned to support our clients on their journey toward decarbonization and better outcomes .
Green Steel World | Issue 15 | November 2024 41