Published Date : 03 May 2023
The global green steel industry revenue will attain around USD 6,24,414.85 million by 2032 from USD 196.84 million in 2022 and is poised to grow at a CAGR of 123.94% between 2023 and 2032.
The desire for sustainable products among consumers and manufacturers, as well as growing international government efforts, have considerably fueled the development of the world industry for green steel.
Fundamentally, making steel without the use of natural fuels is what is meant by "green steel."
One option that might aid in lowering the carbon footprint of the steel business is so-called "green hydrogen." "Only water is released when hydrogen is consumed. According to Mitsubishi Heavy Industries Group, "if that hydrogen is produced via electrolysis using just water and renewable electricity, then it is completely free of CO2 emissions." (MHI). According to MHI, hydrogen can also be generated with minimal carbon emissions if fossil fuels are used along with carbon capture, utilization, and storage (CCUS) methods. This substance is called "blue hydrogen."
In the future, green steel is anticipated to lower carbon emissions and be an important tool for accomplishing different nations' sustainable development objectives. Green hydrogen, which is produced without the use of natural fuels from sustainable sources, is used to make green steel. The desire for sustainable products among consumers and manufacturers, as well as growing international government efforts, have considerably fueled the development of the world industry for green steel.
With practical options for clean steelmaking, the "Green Steel for Europe" (GREENSTEEL) initiative assists the EU in reaching the 2030 climate and energy goals as well as the 2050 long-term plan for a climate-neutral Europe. The project consortium, which consists of 10 collaborators, draws on a variety of knowledge and abilities to provide comprehensive coverage of the EU Member States and steelmaking facilities. Green Steel for Europe's novel methodology, which combines evaluations of potential technologies, models for industrial transformation, and policy options and effects, will significantly aid in the steel industry's sustainable decarbonization.
A very lucrative industry in the area for renewable steel is North America. Due to increased expenditures and offtake alliances among new businesses to meet new business strategies, the green steel sector in the UK has expanded recently.
Green Steel Industry Report Scope:
|Market Revenue in 2023||USD 440.81 Million|
|Projected Forecast Revenue in 2032||USD 6,24,414.85 Million|
|Growth Rate from 2023 to 2032||CAGR of 123.94%|
|Forecast Period||2023 to 2032|
|Regions Covered||North America, Europe, Asia-Pacific, Latin America and Middle East & Africa|
The global green steel business has suffered as a result of COVID-19, especially in the power and energy industries. The pandemic also affected the sale and purchase of steel products, which reduced the availability of green steel worldwide. The industry for green steel decreased by about 12%–14% during the COVID-19 era.
The majority of developing nations' present green steel industry circumstances demonstrate that during the pandemic, steel usage decreased. Many difficulties have been encountered in the production of green steel by several significant businesses.
The demand for green steel products like hot-rolled sheets and cold-rolled sheets would increase as a result of strict government rules, especially in the area of infrastructure. Automobile manufacturers are making significant business investments. As the demand for contemporary electric cars rises, so is anticipated to the demand for green steel.
Drivers: New technologies are driving the industry
In the iron and steel industry, new technologies are being created that greatly reduce carbon emissions, making their acceptance in nations like India a crucial step toward decarbonization. The paths to promote more sustainable technological uptake, as well as their directionality, are less obvious, and this is the subject of our study. In opposition to conventional approaches that emphasize economic growth and efficiencies, the concept of directionality recognizes that environmental and socioeconomic aims are targets. Our study's emphasis is on the procedures used in making steel. Rather than placing a heavy emphasis on economic development, transformative innovation emphasizes social issues.
Restraints: Complicated carbon accounting computations will limit the industry.
Understanding carbon accounting formulas has been the main obstacle in the global industry for green steel because it is extremely difficult to predict the levels of carbon tax during a production process. In turn, this is delaying the process of identifying green steel, even though only a tiny portion of businesses in Northern Europe will be making steel devoid of fossil fuels by 2022. A few digital tools have been produced by businesses like SMS groups and others. However, businesses have recently found it challenging to estimate the volume of CO2 emissions from all of the processes in a full production facility.
Major European steel producers plan to create route-specific green steel by the middle of 2020 as pressure to achieve targets grows. To assist with construction expenses, they are requesting money from the EU as well as from individual member states. To achieve emission goals, a much larger percentage of manufacturing capacity at least 29 million tonnes (Mt) would need to be converted to more environmentally friendly methods.
The cost of producing low-emission steel will be significantly higher than the cost of producing steel the traditional way. Although investing in more environmentally friendly steel manufacturing methods entails high CAPEX and operational expenses, they may help reduce the price of direct emissions. (OPEX).
Production Technology Insights
The industry for electric arc furnaces is expected to expand at the greatest CAGR from 2023 to 2032 based on manufacturing technology. This is because the electric arc furnace effectively reduces the energy required to produce green steel, paving the way for its widespread adoption as a means of producing steel without carbon. Additionally, as a result of government initiatives to lower carbon dioxide pollution from the steel industry in Europe, more electric arc furnaces are being used to produce green steel.
Energy Source Insights
Depending on the source, wind energy is anticipated to contribute significantly to the manufacturing of green steel globally. Wind energy is used in green hydrogen generation facilities to produce hydrogen. Shortly, it is anticipated that increased investment in sustainable energy creation to reduce carbon emissions will grow the industry for the production of green steel. Additionally, it is anticipated that photovoltaic energy will expand quickest. For instance, EVRAZ North America declared that its steel production activities in Pueblo, Colorado, would be powered by solar energy.
The automobile and transportation sector is anticipated to dominate the global green steel industry during the projection timeframe. In 2022, the building and construction industry will grow. The green steel building is a constructed building that over the length of its life cycle greatly lowers emissions, conserves resources and protects the environment. Fast building times, high strength, excellent seismic performance, lightweight, high industrialization, and high housing output are just a few benefits of using green steel construction.
Major Key Players:
By Production Technology
By Energy Source
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