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

This February 2024 briefing by Global Energy Monitor examines the Russian steel industry's continued reliance on coal-based blast furnace-basic oxygen furnace (BF-BOF) technology despite international pressure to decarbonize. The report highlights the potential for a transition to hydrogen-based direct reduced iron-electric arc furnace (DRI-EAF) production to meet EU carbon tariffs and corporate sustainability requirements, while noting that Russia currently prioritizes refurbishing old blast furnaces and pursuing unproven carbon capture and storage (CCS) projects.

• Russia's steel industry is heavily reliant on coal-based BF-BOF technology, which accounted for 60.9% of its total operating capacity of 88,400 ttpa in 2022. While the country has smaller capacities for scrap-based EAF (30.2%) and DRI-fed EAFs (8.9%), it continues to extend the life of coal-based units through relinings and reconstruction works.
• International pressures, specifically the EU Carbon Border Adjustment Mechanism (CBAM) and corporate sustainability reporting rules in the EU and US, are creating financial risks for Russian steel exporters. NLMK, which provided 80% of Russian slab imports to the EU in 2022, will face CBAM pricing starting in 2026. Metalloinvest, which provided 60% of EU DRI imports in 2021, also faces diminishing markets and carbon pricing risks.
• Russia aims to produce 550 thousand tonnes of hydrogen per annum (ttpa) and has pivoted its strategy toward domestic consumption following energy export sanctions. Transitioning to hydrogen-based DRI-EAF steelmaking could create the necessary domestic demand for this hydrogen and significantly reduce emissions intensity to 0.7 tonnes CO2 per tonne of crude steel, compared to 2.2 tonnes for BF-BOF.
• The transition to greener steelmaking is hindered by the exit of major global furnace suppliers Midrex, Danieli, and Primetals from the Russian market, leading to the postponement of some DRI-EAF units. Additionally, Russian companies are investing in carbon capture and storage (CCS), which the report describes as unproven at scale in the iron and steel industry.

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} }