Right now, it is technically feasible to produce steel from non-carbon energy sources, although it is an expensive option. Forrest, of Fortescue Metals, in the Financial Review. Our neighbors and customers want to phase out carbon pollution by 2050, and coal – the most carbon-intensive of the fossil fuels – will be phased out, too,” says Dr. “Australia is in an absolutely unique position to scale green steel. A zero-carbon steel-making endeavor would not supplant “met” coal. But Australia, like the United States, has an incumbent coal sector that provides jobs and wealth to its citizens. “Following this logic, pure hydrogen-based steel production is expected to be cash cost-competitive between 20 in Europe,” the report concludes.īack to Australia’s interest in fossil-free steel making and whether that will come to pass: surely, the country would love to have a brand new steel-making industry with all of the associated benefits. However, this scenario changes as soon as hydrogen prices drop (driven by the cost of electricity) or carbon dioxide prices increase. “(C)onventional steel production still retains a cash cost advantage. “Surging carbon dioxide prices and decreasing hydrogen prices are crucial to ensuring the economic viability (according to cash cost) of pure hydrogen-based steel production,” says the McKinsey report. Within two decades, it could be competitive. The good news is that the cost of producing green hydrogen is dropping: wind and solar prices are falling while the electrolyzers are getting better and cheaper. Even more compelling is that the cost of green hydrogen as an energy source would tack on 20%-30% more to the cost of steel production in the early years. To be sure, the International Energy Agency says that by 2050, steel produced from green hydrogen will total less than 10%. The steel industry accounts for 8% of CO2 emissions globally, says consulting firm McKinsey, which adds that 14% of all steel companies could see their values eroded unless they decarbonize. Steel production will expand exponentially, given that cities are growing and the product is used to make everything from roads and bridges to automobiles and buildings. Photographer: Allison Farrand/Bloomberg © 2020 Bloomberg Finance LP raw steel production rose to 1.48 million tons from 1.446 million tons a week earlier, the American Iron and Steel Institute said in an email. A heated and stretched steel slab is processed at the NLMK Pennsylvania plant in Farrell.
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