British Steel has recently announced its intention to implement a more sustainable approach to steelmaking by allocating £1.25 billion to replace two blast furnaces at its Scunthorpe facility with electric arc furnaces. This significant decision aligns with the UK government’s pledge to contribute up to £500 million towards an electric arc furnace at Tata Steel’s Port Talbot plant in south Wales.
The adoption of electric arc furnaces in steel production represents a promising advancement in the effort to reduce carbon emissions. This method enables the use of up to 100% scrap steel as its raw material, presenting a substantial opportunity for minimizing environmental impact. Given the global shift towards sustainability, electric arc furnaces are poised to emerge as the future of steelmaking.
Steel is recognised for its strength, durability, and recyclability, making it the most widely utilized metal globally across a diverse range of applications, from towering skyscrapers to eco-friendly electric vehicles and solar panels. In 2021, the world produced over 1.8 billion tonnes of crude steel, a figure that is anticipated to continue its upward trajectory.
The United Kingdom alone consumes approximately 12 million tonnes of steel annually. However, the country’s steel production in 2022, which amounted to just under 6 million tonnes, contributed to roughly 2.4% of the nation’s greenhouse gas emissions. This underscores the urgency for more sustainable steel production methods.
Electric arc furnaces function by generating high-temperature arcs between graphite electrodes, utilising electricity as their primary energy source. This process facilitates the melting of metal within a chamber, enabling the utilization of up to 100% scrap steel, in contrast to the blast furnace-basic oxygen furnace method, which can only accommodate a maximum of 30% scrap. Transitioning to electric arc furnaces has the potential to reduce emissions to 0.67 tonnes of CO₂ per tonne of steel produced when using 100% scrap steel.
Furthermore, the electric arc furnace method also presents the possibility for the electricity required in the process to be sourced from 100% renewable sources, offering a more sustainable alternative to the blast furnace method, which relies on a carbon component to reduce iron ore.
Steel recycling is another crucial component of sustainable steelmaking. In 2021, the global steel industry recycled approximately 680 million tonnes of scrap steel, resulting in savings of almost 1 billion tonnes of CO₂ emissions compared to virgin steel production. In the UK, over 8.2 million tonnes of steel scrap were exported, highlighting the potential for domestic use of this material to align with both environmental and economic objectives.
The transition to lower-carbon steelmaking methods necessitates focused research, innovation, and skills development. Key components such as locating and sorting the appropriate types of scrap material, verifying material properties, and enhancing supply chain understanding of electric arc furnace steelmaking are all imperative to ensure the successful adoption of this sustainable technology.
Europe is witnessing a surge in investment in sustainable steelmaking technologies, with numerous major projects already underway. For instance, Sweden is home to the Hybrit project, a fossil-free steel initiative, as well as plans for a hydrogen-powered steel plant by H2 Green Steel. Similarly, Germany has announced significant support for its steel industry’s green transition, with investments in low-emission steelmaking technologies already progressing.
While the UK government has yet to publish an official industrial strategy, various organisations have presented roadmaps for decarbonised steelmaking in the country. With the appropriate levels of government and private sector investment, the UK has the potential to emerge as a global leader in green steelmaking.
As the world continues to grapple with the challenges of rising global temperatures and the intensifying climate crisis, the need for a decarbonised steel industry has never been more urgent. Lower carbon methods of steel production, such as electric arc furnaces, undeniably represent the future of the industry, not only in the UK but on a global scale. Embracing sustainable steelmaking technologies will propel the industry towards a greener and more environmentally conscious future.
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