Summary reader response draft #3

The article "How green steel made with electricity could clean up dirty industry," written by Crownhart (2022), explores an alternative steel manufacturing method called green steel and its benefits. With the steel industry producing 10% of the world’s carbon emissions, major changes are needed to lower the numbers, hence the invention of green steel. This new method relies on electricity to heat up a cell-filled mixture of dissolved iron dioxide to about 1600 degrees Celsius, extract impurities, and emit oxygen gas.

By converting all of the global blast furnace steel production to Boston Metal’s MOE, an electricity-powered process, through rough estimation, it requires 5,000 terawatt-hours of electricity to produce green steel, which is about 20% of global power consumption in 2018 (23,536 terawatt-hours). If green steel manufacturing progresses, converting from blast furnace to electricity is simply shifting one source of emissions to another (Crownhart, 2022).

After extensive research, I am in favour of the innovation of green steel. Many world leaders are aiming to reach the goal of net zero emissions by 2050 by reducing the carbon emissions in different industries. Through the use of decarbonized steel made from technology and electricity as well as utilizing renewable sources like hydrogen, green steel is a step forward in reaching the net zero carbon emission goal, despite a few setbacks like high production costs and a competitive steel industry market.

The first advantage of green steel is its ability to decarbonize the steel industry. A blast furnace is required during regular steel manufacturing. When coal-derived materials, such as coal, are combined with iron ore, liquid iron is produced, which is then used to make steel rod. Through this process, carbon and oxygen would react, thereby emitting carbon dioxide into the atmosphere. When compared to regular steel, green steel uses electricity and hydrogen instead of coke to heat up the material, forming a hot oxide ‘soup’ and allowing molten iron to gather at the bottom and, in return, emitting oxygen (Crownheart, 2022).

With an increasing demand for steel, the use of green steel has an advantage in reducing carbon emissions. By implementing green steel, this could potentially decrease the world’s overall carbon emissions over time. Green steel is beneficial in terms of achieving the global effort of "meeting net zero emissions by 2050" (Borkar, 2022).

The second advantage of green steel is that it uses renewable sources. Hydrogen plays a huge part in green steel production because it is able to reverse the process used in fuel cells, whereby hydrogen and oxygen react and in turn produce water and electricity. By producing electrolysis, it removes carbon dioxide through the splitting of natural gas modules. Instead of constantly burning coal in the original steel manufacturing process, hydrogen is a replacement option for coal. Hydrogen is a renewable resource that can be easily replenished when it is depleting. But when it comes to coal, it is not renewable and is a fast-depleting source with about 18.2 billion metric tonnes left (Wilkes, Dezem, Shiryaevskaya, 2019).

Therefore, green steel is able to reduce carbon emissions as well as utilise a "constant source of renewable energy" (Borkar, 2022) like hydrogen as an option for manufacturing steel, compared to the usage of coke or coal, which is a non-renewable resource.

Despite all the advantages, the reality is that manufacturing green steel is expensive. By rough estimation, the cost of production for hydrogen-based steel is about 20%–30% higher than steel. With production costs corresponding to carbon prices, carbon steel roughly costs $70–100/tCO2, from there, it is estimated that the cost for hydrogen-based steel will be $91–130 (Blank, 2019).

We also need to consider the cost-competitive market; with hydrogen being the ‘go-to’ solution for substituting fossil fuels, it is expected that demand and the cost of green hydrogen will increase over time. As of right now, the cost of renewable hydrogen is $3.70/kg, and in order to compete with the present steel-making prices, the cost needs to drop to around $1/kg or below (Lea, 2022). Hence, for green steel to compete in the steel industry, the cost needs to drop by more than 50% to compete with regular steel ("Will green steel?" 2022). Alternative methods would also be taken into consideration, like cheap labour, finance, and advanced technology, to expedite the chances of competing in the steel industry (Borkar, 2022).

Going forward, green steel is an opportunity for the steel industry to reach its goal of net zero emissions by 2050. There will be a few setbacks that need to be discussed, like reducing production costs, which increases the chances of allowing green steel to be a contender in the steel industry. Overall, by improving current technologies to decarbonize steel and having a large quantity of hydrogen, green steel can be a pivotal point for decarbonizing the steel industry.


Reference

Borkar, V. (2022, June 09). Green steel: How one of the world’s most emission intensive industry plans to decarbonize.

https://www.aranca.com/knowledge-library/articles/business-research/green-steel-how-one-of-the-worlds-most-emission-intensive-industry-plans-to-decarbonize#:~:text=The%20manufacture%20of%20green%20steel,dioxide%20per%20ton%20of%20steel.&text=Green%20steel%20has%20the%20potential,constant%20source%20of%20renewable%20energy.

Blank, T.K. (2019, September). The disruptive potential of green steel.

https://rmi.org/wp-content/uploads/2019/09/green-steel-insight-brief.pdf

Wilkes, W. Dezem, V. Shiryaevskaya, A. (2019, December 03). How ‘green hydrogen’ could make ‘green steel’ real.

https://www.bloomberg.com/professional/blog/how-green-hydrogen-could-make-green-steel-real/

Crownhart, C. (2022, June 28). How green steel made with electricity could clean up a dirty industry.

https://www.technologyreview.com/2022/06/28/1055027/green-steel-electricity-boston-metal/

Lea, A. (2022, June 10). Green steel needs hydrogen prices below $2/kg.

https://www.argusmedia.com/en/news/2340240-green-steel-needs-hydrogen-price-below-2kg

Wood Mackenzie. (2022, July 19). Will green steel be cost competitive by 2035?.

https://www.woodmac.com/reports/energy-markets-will-green-steel-be-cost-competitive-by-2035-150049267/

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