Western steel producers are working to adopt low-carbon methods, but the growth of coal-fired steel mills threatens to outpace green steel technology development by 2.5 times, according to researchers. A report by Global Energy Monitor (GEM) found that 80 per cent of the steelmaking capacity of the 50 largest global steelmakers is based on carbon-intensive blast furnace-basic oxygen furnace (BF-BOF) technology, with only a handful of these producers committed to carbon neutrality or net zero emissions by 2050.
The report also highlights the significant imbalance between the construction of new blast furnace capacity and the development of low-emission steel technologies. New blast furnace capacity is 208.2 million tonnes per annum (Mtpa), while low-emission steel capacity is only 83.6 Mtpa.
The long lifespan of blast furnaces, which can operate for up to 40 years, raises concerns about the ability of the steel sector to decarbonise, as options to reduce emissions from blast furnaces are limited.
While climate organisations have expressed concern about the slow progress in green steel technologies, metallurgical coal producers see an opportunity in India's growing steel market. India's demand for metallurgical coal is projected to grow by 281 per cent by 2050, with a significant portion to be met by Australia.
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