Opportunities for Near-Zero-Emissions Steel Production in the Great Lakes

This briefing by RMI analyzes the potential for transitioning the Great Lakes region's steel industry to near-zero-emissions production. It identifies a gap between aggressive federal incentives—such as the Inflation Reduction Act (IRA) and Infrastructure Investment and Jobs Act (IIJA)—and the lack of coordinated, steel-specific industrial strategies at the state level. The report evaluates three primary decarbonization pathways: Blast furnace–basic oxygen furnace (BF-BOF) with carbon capture and storage (CCS), natural gas direct reduced iron (DRI) with CCS, and renewable hydrogen-based DRI, noting that hydrogen DRI offers the lowest emissions intensity and most competitive levelized costs when subsidies are included. It emphasizes the region's economic importance, as the Great Lakes house all of the US's integrated steel mills and two-thirds of the nation's steelworkers, while warning that failure to modernize could lead to a loss of competitiveness and jobs to other regions or international markets.

• The Great Lakes region is the center of US steel production, accounting for 60% of US steel production in 2021. All integrated steel mills in the United States are located in the Great Lakes, specifically in Indiana (three), Ohio (two), Illinois (two), Michigan (one), and Pennsylvania (one).
• Three primary emissions reduction pathways are analyzed: BF-BOF with CCS, natural gas DRI with CCS, and hydrogen DRI-EAF. The H2 DRI-EAF pathway is identified as having the lowest emissions intensity and, when accounting for federal subsidies, the lowest levelized cost.
• There is a significant policy gap in the Great Lakes region; while the federal government provides roadmaps and funding, no state in the region has set specific greenhouse gas targets or a transition timetable specifically for the steel industry.
• Demand for low-emissions steel in the US is driven by the automotive sector and federal 'Buy Clean' initiatives, with the potential for more than 6 million tons of demand by 2030.
• Transitioning to near-zero-emissions steel could increase direct employment in the supply chain. A hydrogen DRI facility with a 2-mtpa capacity could employ between 1,300 and 1,700 individuals, compared to approximately 1,350 for an equivalent BF-BOF facility.
• The transition to DRI-EAF production pathways significantly reduces local criteria air pollutants compared to BF-BOF methods, which is critical for the health of fence-line communities.

APA

RMI (2023). Opportunities for Near-Zero-Emissions Steel Production in the Great Lakes. https://rmi.org/resources/gap-analysis-for-near-zero-emissions-steel-production-in-the-great-lakes/

Chicago

RMI. Opportunities for Near-Zero-Emissions Steel Production in the Great Lakes. 2023. https://rmi.org/resources/gap-analysis-for-near-zero-emissions-steel-production-in-the-great-lakes/.

Wikipedia

{{cite report |author=RMI |title=Opportunities for Near-Zero-Emissions Steel Production in the Great Lakes |date=26 September 2023 |url=https://rmi.org/resources/gap-analysis-for-near-zero-emissions-steel-production-in-the-great-lakes/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2023opportunities, author = {{RMI}}, title = {{Opportunities for Near-Zero-Emissions Steel Production in the Great Lakes}}, institution = {RMI}, year = {2023}, month = sep, url = {https://rmi.org/resources/gap-analysis-for-near-zero-emissions-steel-production-in-the-great-lakes/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }