Forging a Clean Steel Economy in the United States
, due to an increasing share of production from EAFs and energy optimizations at integrated facilities. These steps, along with setting corporate climate goals, indicate movement in the right direction. If we dive a little deeper however, evaluating climate alignment at the corporate level for US producers relying on blast furnace technology — it is clear that a major technological shift is required to converge to a 1.5°C trajectory.
Given that nearly half of the primary steel assets face major investments this decade to extend their operational lifetime, the choice to transition totechnology utilizing natural gas could be the first step to maintaining sustainable development for the Midwest, helping the region compete with less traditional production bases set to spring up elsewhere in the country.
Encouragingly, subsidies offered by the hydrogen production tax credit provide an opportunity to leapfrog to renewable hydrogen utilizing this same direct reduction technology . This could shift the most cost-effective production locations to those that combine low-cost iron ore with high renewable energy capacity factors , inviting new regions in the United States to establish low-emissions steelmaking.
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