Sustainable Development and Innovations in the Steel Industry

We support our partners and clients on their journey towards sustainable solutions and help implement innovative technologies and new concepts. A compelling example of this is the current development in the steel industry, which is explored in detail by the head of our Competence Center for Materials in our latest article.

Steel, a fundamental material for modern society, is crucial for infrastructure, transportation, and energy systems. However, its production is one of the largest industrial sources of carbon dioxide emissions, accounting for around 11% of global emissions [1]. As the world faces the increasing impacts of climate change – clearly felt through the extreme heatwaves this summer – the steel industry must adopt sustainable practices and technologies to reduce its environmental footprint. In this article, we highlight the ongoing efforts and innovations that are leading the sector towards a low-carbon future.

Figure 1: Steel production, total CO₂ emissions and CO₂ intensity, 2019–2050, according to the International Energy Agency [1].

Decarbonizing the Steel Industry – Global Strategies and Technologies

Key steel-producing regions—including China, Europe, India, Japan, Russia, and the United States—have committed to decarbonizing their steel industries to meet climate targets. As the largest producer and consumer, China plays a major role. Guided by domestic policy, the country has set ambitious "Dual Carbon" goals to peak CO₂ emissions before 2030 and achieve carbon neutrality by 2060. Its roadmap includes energy-saving upgrades, pollution control measures, waste recycling, and capacity optimization.

Globally, the main strategies to reduce emissions in the steel sector focus on the use of renewable energy, low-carbon processing, and carbon capture, utilization and storage (CCUS) technologies [2,3].

Hydrogen is emerging as a key enabler of deep decarbonization. Serving as both a reducing agent and a clean energy source, hydrogen metallurgy offers a transformative pathway toward sustainable steel production. This method complements ongoing progress in renewable energy integration and CCUS innovations, both essential for achieving substantial emissions reductions [2].

Innovation through Recycling and Materials Science

Recycling iron and steel is a cornerstone of sustainability in the sector. However, maintaining the quality of recycled steel to meet application demands remains a significant challenge. Innovations such as electrorefining processes enable direct decarbonization of molten iron while recovering valuable by-products like silicon. These methods show promise for scalability and integration into existing secondary steel plants, enhancing overall sustainability [3].

Materials science is also improving the performance and longevity of steel products. For example, rare-earth steels processed with low oxygen content exhibit enhanced mechanical properties, including a 40-fold increase in fatigue life under tensile-compression and a 40% increase in rolling contact fatigue life. These improvements reduce the required material volume, secondary processing needs, and downstream emissions [4].

Collaboration and System Change for a Sustainable Future

Transforming the steel industry requires coordinated efforts across the entire value chain. Collaboration with downstream customers is essential to develop low-carbon products that meet application requirements—particularly in clean energy sectors such as photovoltaics, electric vehicles, and hydrogen energy systems.

Moreover, fostering a supportive market environment—with clear policies, evaluation standards, and financial incentives—is critical to driving innovation adoption and structural change within the industry.

A sustainable future for the steel industry demands a multi-layered approach that integrates technological innovation, political support, and cooperative partnerships. By advancing low-carbon technologies, recycling innovations, and materials science, the sector can significantly reduce its environmental impact while maintaining its vital role in modern society. Given the ongoing global climate challenges, the steel industry must lead by example in the transition toward a low-carbon, sustainable future.

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References

[1] World Steel Association (2023). Climate Change and the Production of Iron and Steel.

[2] Pursuit of Green Steel. Nat. Mater. 21, 1091 (2022). https://doi.org/10.1038/s41563-022-01379-y

[3] Richter, W. D., Paeng, J., & Azimi, G. (2022). Electrorefining for Direct Decarbonization of Molten Iron. Nature Materials, 21(10), 1130–1136.

[4] Li, D., et al. (2022). Rare-Earth Steels with Low Oxygen Content. Nature Materials, 21(10), 1137–1143.