Russia doubles down on coal-based steelmaking, even as opportunity grows for greener technology

Russia's steel industry remains dominated by emissions-intensive coal-based blast furnace-basic oxygen furnace (BF-BOF) technology, which accounts for 60.9% of its 88,400 ttpa operating capacity. Despite pressures from the EU Carbon Border Adjustment Mechanism (CBAM) and corporate sustainability reporting rules in the EU and US, Russian companies are refurbishing old blast furnaces and planning new ones rather than transitioning to low-emissions electric arc furnace (EAF) or hydrogen-based direct reduced iron (DRI) production. While Russia aims to produce 550 thousand tonnes of hydrogen per annum, it lacks domestic demand and faces challenges in DRI-EAF deployment due to the exit of key Western suppliers like Midrex, Danieli, and Primetals. The report suggests that redirecting investments from blast furnace relinings to hydrogen-based DRI could stimulate the domestic hydrogen market and align Russian steel with global decarbonization standards.

• Russia's steel industry is heavily reliant on coal-based BF-BOF technology, which represents 60.9% of the total operating capacity of 88,400 ttpa. Other technologies include EAF at 30.2% and DRI-EAF at 8.9%.
• International pressures, specifically the EU Carbon Border Adjustment Mechanism (CBAM) effective from October 2023 and fully operational by 2026, as well as mandatory corporate sustainability reporting in the EU and US, are creating economic incentives for Russian steel exporters to decarbonize.
• Despite decarbonization opportunities, Russia is extending the life of its coal-based fleet through relinings and planning new blast furnace units, including some with carbon capture and storage (CCS), which the document notes is unproven at scale in the steel industry.
• Russia's goal to produce 550 thousand tonnes of hydrogen per annum is hindered by a lack of domestic demand and the exit of major furnace suppliers such as Midrex, Danieli, and Primetals, which has postponed some DRI-EAF projects.
• Major Russian steel companies face varying pressures: NLMK is highly exposed to CBAM due to its dominance in EU slab imports, while Metalloinvest is attempting to transition from fossil gas-based DRI to hydrogen-based DRI, though it currently focuses on risky CCS investments.

APA

Swalec, C., Fralikhina, H., & Kozybay, Z. (2024). Russia doubles down on coal-based steelmaking, even as opportunity grows for greener technology. Global Energy Monitor. https://globalenergymonitor.org/sites/default/files/migration/reports/GEM_Russia_Steel_Briefing_11.pdf

Chicago

Swalec, Caitlin, Hanna Fralikhina, and Zhanaiym Kozybay. Russia doubles down on coal-based steelmaking, even as opportunity grows for greener technology. Global Energy Monitor, 2024. https://globalenergymonitor.org/sites/default/files/migration/reports/GEM_Russia_Steel_Briefing_11.pdf.

Wikipedia

{{cite report |last1=Swalec |first1=Caitlin |last2=Fralikhina |first2=Hanna |last3=Kozybay |first3=Zhanaiym |title=Russia doubles down on coal-based steelmaking, even as opportunity grows for greener technology |publisher=Global Energy Monitor |date=February 2024 |url=https://globalenergymonitor.org/sites/default/files/migration/reports/GEM_Russia_Steel_Briefing_11.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{swalec2024russia, author = {Swalec, Caitlin and Fralikhina, Hanna and Kozybay, Zhanaiym}, title = {{Russia doubles down on coal-based steelmaking, even as opportunity grows for greener technology}}, institution = {Global Energy Monitor}, year = {2024}, month = feb, url = {https://globalenergymonitor.org/sites/default/files/migration/reports/GEM_Russia_Steel_Briefing_11.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }