Efforts to reduce greenhouse gas (GHG) emissions in steelmaking via carbon-capture technology and a switch to green hydrogen are unlikely to be economically viable before 2030, steelmaker ArcelorMittal said in its Sustainability Report 2024, which was published April 17.
CEO Aditya Mittal said in the report that the company’s Scope 1 and Scope 2 emissions were almost 50% lower in 2024 than they were in 2018, and that it now produces about a quarter of its steel through DRI-EAF steelmaking. In that process, iron ore is reduced to produce direct reduced iron (DRI) using hydrogen, with the DRI then melted in an electric arc furnace (EAF). Steel produced in this way can have a carbon intensity (CI) that is 75% lower than steel produced in a traditional blast furnace. (See photos below.)
Advocates of green hydrogen have touted its potential in hard-to-abate industries like steelmaking as a way to lower emissions.
“It is becoming increasingly clear that transformational ironmaking, such as adding carbon capture, utilization and storage (CCS) or moving to green hydrogen DRI-EAF, is only likely to be economical post-2030, and that policies that address the high capital and operational costs involved are required to make that happen,” Mittal said.
The report found that green hydrogen is not yet a viable fuel source and CCS infrastructure is still in the planning stages, making it “increasingly unlikely” that the company will be able to meet its 2030 CI target.
