Most steel will still be made from primary raw materials including iron ore and metallurgical coal beyond 2050 because of limited supplies of ferrous scrap, according to information presented July 28 by the Net-Zero Steel Pathway Methodology Project, or NZSPMP, a sectoral grouping.
We "can't rely on scrap to decarbonise steelmaking; iron ore (primary) based steelmaking will remain critical beyond 2050 ... steel production from scrap will only satisfy about 45% of future demand due to limited scrap availability," Javier Bonaplata of steelmaker ArcelorMittal said on a NZSPMP webinar.
This means that the steel sector's decarbonization targets and budgets should be split into two, between iron ore-based (primary steel) production and scrap-based (secondary steel) production which are quite different in terms of their decarbonization needs, Bonaplata said.
Setting different carbon intensity targets and decarbonization budgets for primary and secondary steelmaking is the first recommendation made in the NZSPMP's report, launched this week, he said.
According to data presented by Bonaplata, scrap-based steelmaking accounts for 0.3 mt CO2 in Scope 2 emissions and 0.04 mt CO2 in Scope 1 emissions per metric ton of steel produced, making it "basically carbon neutral steel" if it also uses clean energy sources.
This compares very favorably to iron ore-based steelmaking, which produces between 1.4 and 2.2 mt CO2 in Scope 1 and 2 emissions combined, per mt of steel produced, he said.
Currently scrap-based steelmaking accounts for just over 30% of global steel production.
Source : https://www.spglobal.com/platts/en/market-insights/latest-news/coal