Steel is a challenging industry to decarbonise. However, evolving green steel targets are changing the supply landscape, with steelmakers facing pressure from stakeholders to reduce their reliance on traditional (highly polluting) blast furnace routes and adopt lower-emissions alternatives.

The global share of electric arc furnaces (EAFs) in steelmaking is rising following policy shifts and increased focus on scrap use. Basic oxygen furnace (BOF) production will decline by 0.5% p.a. to 2050, while electric arc furnace production may grow by 2.3% p.a. over the same period. EAF will account for 48% of the technology share in steelmaking by 2050, up from 30% last year and almost on par with traditional BOF methods.

Combined with green hydrogen-based Direct Reduced Iron (DRI), the use of waste and the adoption of Carbon Capture, Utilization and Storage (CCUS), the steel industry could reduce its carbon emissions by 30% by mid-century compared to current levels