South China Morning Post reported that according to a new report by US think tank Global Energy Monitor, China needs to transition its steel sector from a carbon-intensive process to electric steelmaking if it is to reach its goal of becoming carbon neutral by 2060. As per report, reducing the carbon dioxide emissions of steel plants will be critical to achieving Beijing’s climate targets since the sector is so vast, with China accounting for more than half of the world’s steelmaking capacity. The report said “China’s steelmakers produce over 60% of the global steel industry’s emissions, and the sector accounts for 15% of China’s carbon dioxide emissions. That makes it the second-largest emitter in the country after the power sector, which produces about 40% of total emissions.” The report said “Steelmakers could take action to reduce emissions by moving to a less carbon-intensive process. More than 75% of plants in operation use a high-carbon process called blast furnace-basic oxygen furnace, or BF-BOF. 93% of the steelmaking capacity being built in China will use this process as compared to 75% under construction worldwide. To decarbonise the steel sector, China needs to transition away from BF-BOF steelmaking to the electric arc furnace steelmaking. Building new BF-BOF steel plants bring large stranded asset risk to the country, especially with the complications of overcapacity, so any new capacity in China should be lower-emissions processes like scrap-based EAFs.” The report is based on the first comprehensive survey of all crude steel plants around the world with a capacity of at least 1 million tonnes per annum. It looked at 553 steel plants representing 82% of the world’s installed capacity, as well as 42% proposed new facilities.
South China Morning Post reported that according to a new report by US think tank Global Energy Monitor, China needs to transition its steel sector from a carbon-intensive process to electric steelmaking if it is to reach its goal of becoming carbon neutral by 2060. As per report, reducing the carbon dioxide emissions of steel plants will be critical to achieving Beijing’s climate targets since the sector is so vast, with China accounting for more than half of the world’s steelmaking capacity. The report said “China’s steelmakers produce over 60% of the global steel industry’s emissions, and the sector accounts for 15% of China’s carbon dioxide emissions. That makes it the second-largest emitter in the country after the power sector, which produces about 40% of total emissions.” The report said “Steelmakers could take action to reduce emissions by moving to a less carbon-intensive process. More than 75% of plants in operation use a high-carbon process called blast furnace-basic oxygen furnace, or BF-BOF. 93% of the steelmaking capacity being built in China will use this process as compared to 75% under construction worldwide. To decarbonise the steel sector, China needs to transition away from BF-BOF steelmaking to the electric arc furnace steelmaking. Building new BF-BOF steel plants bring large stranded asset risk to the country, especially with the complications of overcapacity, so any new capacity in China should be lower-emissions processes like scrap-based EAFs.” The report is based on the first comprehensive survey of all crude steel plants around the world with a capacity of at least 1 million tonnes per annum. It looked at 553 steel plants representing 82% of the world’s installed capacity, as well as 42% proposed new facilities.
