Transforming the European Steel Sector to Net Zero

The EU steel sector, which contributes 5% of the region's annual CO2 emissions, faces significant technical and economic hurdles in its transition to net zero. While hydrogen-based DRI is a prominent pathway, its scalability is limited by the massive requirements for renewable electricity and low-carbon hydrogen. Carbon capture and storage (CCS) is presented as a complementary, potentially lower-cost near-term solution for both blast furnace and DRI plants. The report concludes that a portfolio of technologies is necessary to mitigate risks and ensure the industry's survival, supported by carbon pricing, border adjustments, and demand-side policies.

• The EU steel industry is a major emitter, producing 190 million tonnes of CO2 annually, which represents over 5% of the European Union's total CO2 emissions.
• Secondary steel production from scrap is significantly less carbon intensive than primary production and currently accounts for approximately 44% of European output, with projections to reach 60% by 2050 in net-zero scenarios.
• Transitioning the EU's 2021 primary steel production (85 Mt) entirely to hydrogen-based DRI would require 4.9 Mt (over 54 billion m3) of hydrogen, equivalent to half of the REPowerEU domestic production target.
• Relying solely on renewable-powered electrolysis for steel's hydrogen needs would require nearly 300 TWh of renewable generation, which is almost double the EU's total solar power output in 2021.
• Carbon capture and storage (CCS) is identified as a potentially lower-cost alternative to hydrogen-DRI and is essential for addressing residual emissions from alloying carbon and EAF electrodes, which ArcelorMittal estimates could be up to 0.5 tonnes of CO2 per tonne of steel.
• Several hydrogen-DRI projects are underway in Sweden, including Hybrit, which plans a 1.3 Mt/year plant by 2025, and H2 Green Steel, which aims for 2.5 Mt/year by 2025 using 700 MW of electrolysis.
• The report advocates for a comprehensive policy approach including a strong carbon price, a carbon border adjustment mechanism, public procurement, and harmonised green steel standards to create a market for decarbonised steel.

APA

Clean Air Task Force (n.d.). Transforming the European Steel Sector to Net Zero. https://cdn.catf.us/wp-content/uploads/2024/03/18172449/transforming-european-steel-sector-net-zero.pdf

Chicago

Clean Air Task Force. Transforming the European Steel Sector to Net Zero. n.d. https://cdn.catf.us/wp-content/uploads/2024/03/18172449/transforming-european-steel-sector-net-zero.pdf.

Wikipedia

{{cite report |author=Clean Air Task Force |title=Transforming the European Steel Sector to Net Zero |url=https://cdn.catf.us/wp-content/uploads/2024/03/18172449/transforming-european-steel-sector-net-zero.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{cleanairtaskforcendtransforming, author = {{Clean Air Task Force}}, title = {{Transforming the European Steel Sector to Net Zero}}, institution = {Clean Air Task Force}, url = {https://cdn.catf.us/wp-content/uploads/2024/03/18172449/transforming-european-steel-sector-net-zero.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }