Wood Mackenzie: Steel Industry to Deliver 30% Dip in Carbon Emissions

SEATTLE (Scrap Monster): The recent study carried out by consultancy major Wood Mackenzie says that carbon dioxide emissions from world steel sector is likely to witness nearly 30% dip by 2050, when compared with 2021. The drastic reduction in emissions is mainly on account of increasing number of steel mills across the world turning to electric arc furnaces (EAFs), it said.

The EAF steelmaking process will represent 48% of the global steelmaking by 2050, thus increasing its share considerably from 30% during the previous year. This makes EAF steelmaking almost on par with traditional blast furnace steelmaking.

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According to Malan Wu, Director of Research, Wood Mackenzie, the EAF steelmaking could boost scrap use, along with green-hydrogen-based direct reduced iron (DRI). The adoption of latest carbon capture techniques will help the sector to reduce its carbon emissions by 30% from current levels by mid-century, he said.

The consultancy expects China to lead the carbon emissions cut, by halving its carbon emissions in the coming three decades. The declining steel production in China should obviously contribute to substantial reduction in carbon emissions. The global steel sector was responsible for emission of more than 3.3 billion tonnes of greenhouse gases during the previous year, it noted.