How can the global steel industry decarbonize and move forward?
The proposal of the global "net-zero goal" has had a profound impact on the steel industry. How can the global steel industry achieve "net-zero emissions" in the value chain through different channels?
The steel industry plays an important role in global economic development. Edwin Basson, Director-General of the World Steel Council, said at the 13th China International Steel Conference held in Shanghai: "The steel industry can contribute up to 14% to global economic growth." Relevant data from the World Steel Council predicts that in the context of carbon neutrality, crude steel output will reach 2.2 billion tons to 2.4 billion tons by 2050 with a slight increase in steel demand. With increased production, the steel industry also needs to responsibly reduce carbon emissions.
Relevant research results from the International Energy Agency show that the global low-carbon transformation journey needs to go through several stages. Among them, 2020 - 2030 is the transition period;2030 - 2050/2070 is the promotion and transformation period. At this stage, the steel industry will achieve "net zero emissions" in the value chain through different channels.
In 2023, China's steel output will be 1.019 billion tons, accounting for about 54% of the global total; apparent steel consumption will account for about 51% of the global total. As the world's largest steel producer and consumer, China's formulation and implementation of its green steel standards have an important impact on the sustainable development of the global steel industry. In recent years, the Chinese government has attached great importance to environmental issues in the steel industry and actively promoted the transformation of the industry into a green and low-carbon direction.
Yu Yong, chairman of Hegang Group, said that green and low-carbon have become the common background and common action for global industrial development. To achieve green, low-carbon and sustainable steel, we must focus on innovation in energy structure, process structure and material technology. Reducing the carbon footprint requires the coordinated advancement of the steel industry chain and supply chain. It is necessary to strengthen the coordination between steel manufacturing and raw and fuel terminals, promote the optimization of iron resources and innovation of energy structure, and achieve carbon reduction at the source.
He Wenbo, executive president of the China Iron and Steel Association, pointed out that in the face of uncertain markets and certain and difficult green and low-carbon directions, the Chinese steel industry believes that only through collaborative cooperation can we achieve win-win results. Currently, the world steel market is in a downturn, and China's steel industry is also affected by declining demand. However, the direction of green and low-carbon transformation is firm, the tasks and goals remain unchanged, and tangible progress is continuing to be made. Ultra-low emission transformation is progressing in an orderly manner, and the task of transforming 80% of existing production capacity will be completed by 2025. By then, China will contribute more modern garden-style steel mills to the world.
Kazuhisa Fukuda, vice president of Nippon Steel Co., Ltd., said that by 2050, Nippon Steel is committed to providing high-performance steel and solutions that reduce carbon emissions, leading the decarbonization of steel manufacturing processes, and providing carbon to the market as soon as possible Neutralize steel to meet customers 'decarbonization needs.
Kazuhisa Fukuda said that to realize the 2050 vision of carbon neutrality, there are two important tasks. One is to study how to deal with the increase in steel manufacturing costs, and the other is to accelerate the construction of a social assistance network. According to estimates, the equipment investment needed to achieve carbon neutrality in the entire Japanese steel industry is expected to be around 10 trillion yen, and one-third of the investment is currently borne by the state. Through appeals and publicity, Japan Steel has gradually formed a consensus that the whole society should share costs to ensure that companies can participate in international competition fairly.
How can the global steel industry achieve the goal of "net zero emissions"? Edwin Basson proposed that achieving the "net zero emissions" goal requires meeting the following prerequisites: stable and cheap clean energy supply, carbon reduction in business operations and industrial chains, and low carbon development in the construction of "low-carbon cities" and infrastructure construction. Carbon development, development of low-carbon emission intelligent transportation industry, global trade activities to support climate action, and continued transition to a circular economy.
Edwin Basson said the steel industry needs to develop targeted low-carbon solutions. For now, the blast furnace smelting process has great potential for carbon reduction. As technology upgrades accelerate, low-carbon solutions for this process will become increasingly economical. In addition, long-life-cycle steel production activities must not only meet market demand, but also meet low-carbon attribute needs.
