Global Steel Industry Under Threat from Abandoned Assets

SEATTLE (Scrap Monster): The latest report published by Global Energy Monitor (GEM) says that global steel industry is likely to be threatened by obsolete furnaces over the coming years, as carbon emission reduction becomes the new norm of the industry. The industry may have to discard nearly $70 billion worth of blast furnaces that use coal, especially in China- the world’s largest steel producing country.

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According to Christine Shearer, GEM’s coal programme director, nearly 50 million tonnes of steelmaking capacity is currently under development using blast furnace technology, mainly in China. Building new coal-based blast furnaces is detrimental, not only for steel producers but also for the entire planet. These furnaces are likely to become inoperable or inefficient over the years, as governments across the world apply stricter carbon emissions targets, Shearer said.

The global iron and steel sector is currently responsible for around 11% of carbon dioxide emissions and 7% greenhouse gas emissions. In order to meet the Paris Climate agreement, the emissions need to reach net zero by 2050 or latest by 2070. The steelmakers need to look into electric arc furnace production, in addition to switching to hydrogen and carbon capture technologies to cut emissions in a big way.