Synopsis

Leading corporate giants, including Microsoft, Nextracker, and Trammell Crow Company, have united under the aegis of the Sustainable Steel Buyers Platform, orchestrated by RMI (formerly known as Rocky Mountain Institute), to usher in the era of near-zero emissions steel in North America. This groundbreaking initiative, commencing later this year, aims to procure approximately 2 million tons of near-zero emissions steel, a pivotal step toward achieving corporate climate goals and transitioning to a more sustainable future. Near-zero emissions steel, often referred to as "green steel," represents a shift from carbon-intensive production methods to greener alternatives, with the potential to reduce carbon dioxide emissions significantly.

Article

In a watershed moment for sustainability, several corporate titans, including Microsoft, Nextracker, and Trammell Crow Company, have joined forces to pave the way for the adoption of near-zero emissions steel in North America. This monumental endeavor is spearheaded by the Sustainable Steel Buyers Platform, meticulously orchestrated by RMI (Rocky Mountain Institute), a renowned clean energy nonprofit organization.

Commencing later this year, the Platform will embark on a competitive procurement process open to all steelmakers, aimed at delivering sustainable steel to North America. The ultimate objective of this collective effort is to secure approximately 2 million tons of near-zero emissions steel—a resounding testament to the commitment of these industry leaders to environmental stewardship. Currently, the group is engaging with steelmakers through a request for information process to gain insights into the conditions necessary to facilitate this transformative production.

Julia Fidler, the fuel and materials decarbonization lead at Microsoft, expressed enthusiasm for this groundbreaking partnership. She emphasized that the Platform presents a unique opportunity to advance low-carbon steel solutions, a critical component of Microsoft's goal to achieve carbon negativity by 2030 and contribute to a more sustainable world.

Trammell Crow Company, the largest commercial development firm in the United States, is equally committed to reducing carbon emissions throughout its value chain. James Murray-Coleman, the director of sustainability for Trammell Crow Company, lauded the Sustainable Steel Buyers Platform as an initiative that would enhance not only their efforts but also those of any entity reliant on steel in their products.

Near-zero emissions steel, often colloquially known as "green steel," requires a transformative shift away from current carbon-intensive practices, embracing methods that capture or entirely avoid emissions. Currently, steel production relies heavily on carbon-intensive processes utilizing coal or natural gas, a contributor to 7 percent of global carbon dioxide emissions.

Thomas Koch Blank, managing director at RMI, highlighted the potential of corporate climate commitments, like those of the Platform's partners, to drive substantial change in the steel industry. If US corporate demand for sustainable steel can be effectively pooled, it has the potential to prompt investment decisions for three US near-zero emissions steel plants before 2030.

The demand for green steel is expected to surge to 6.7 megatons annually by the end of the decade, driven by corporations striving to meet climate targets through sustainable construction and clean manufacturing practices. By opting for near-zero emissions steel over traditional fossil fuel-intensive steel, life-cycle emissions in various sectors, such as automobiles and energy infrastructure, can be significantly reduced.

Nextracker, a leading supplier of solar trackers for utility-scale solar power generation projects worldwide, sees its participation in the Sustainable Steel Buyers Platform as an essential step in decarbonizing its supply chain. Nicolas Brion, senior steel sourcing director of Nextracker, emphasized their commitment to understanding their carbon footprint at a profound level and accelerating supply chain decarbonization.

To ensure transparency throughout the joint procurement process, the Platform will draw upon RMI's work in developing product-level emissions guidance with the World Business Council for Sustainable Development (WBCSD) and adhere to financial industry reporting standards outlined in the Sustainable STEEL Principles.

RMI has a track record of deploying similar initiatives to decarbonize the aviation industry, driving essential supply chains toward sustainability. Through the Sustainable Aviation Buyers Alliance, RMI has championed the adoption of sustainable aviation fuel to mitigate the climate impact of flights.

The Sustainable Steel Buyers Platform stands as North America's first buyers' consortium dedicated to collectively procuring green steel. This innovative approach not only enables US buyers to achieve their sustainability objectives but also propels the decarbonization of the iron and steel sector. Its launch during New York Climate Week coincided with the announcement of the First Movers Coalition's Near-Zero Steel 2030 Challenge, in collaboration with ResponsibleSteel, aimed at identifying demand and mobilizing suppliers to accelerate clean supply chains.

Nancy Gillis, program head at the First Movers Coalition, underscored the significance of this initiative, stating that it had already garnered a $15 billion demand for clean technologies and energy sources. Responding to the Challenge presents suppliers with the opportunity to pre-qualify for US-focused procurement of near-zero steel, furthering the scale-up of clean technologies in the steel industry.

Revitalizing the US steel industry through sustainable steel production promises numerous benefits, including enhancing supply chain security, bolstering trade balances, and enabling infrastructure reinvestment without exacerbating climate concerns. Moreover, these projects have the potential to create skilled industrial employment opportunities, revitalizing traditional steel production centers and expanding opportunities in regions heavily investing in renewable energy deployment.

Conclusion

The alliance of major corporations to drive the adoption of near-zero emissions steel in North America through the Sustainable Steel Buyers Platform represents a landmark achievement in the pursuit of sustainability and climate action. By collectively procuring sustainable steel, these corporate leaders are not only meeting their climate targets but also spearheading a transformative shift in the steel industry toward greener practices. The potential reduction in carbon emissions and the long-term benefits for various sectors underscore the importance of this initiative. It not only aligns with corporate sustainability goals but also has the potential to revitalize the US steel industry and drive regional economic growth.

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