Wood Mackenzie’s latest Horizons research report, Pedal to the metal: Iron and steel’s USD 1.4 trillion shot at Decarbonisation, highlights that decarbonizing the steel and iron ore industry by 2050, in line with the Paris Climate Agreement, will require USD 1.4 trillion of investment and revolution across every stage of the value chain and presents an urgent challenge and enormous opportunity. The analysis by Wood Mackenzie points to the industrialized world’s reliance on steel, with 2.2 billion tonnes of production required to meet global steel demand by 2050, a 15% increase from 2021. Wood Mackenzie Research Director & lead author of the report Malan Wu said “Decarbonizing the steel industry is a staggeringly big task. To meet Wood Mackenzie’s 1.5 degree Celsius accelerated energy transition scenario by 2050, steel emissions must reduce by 90% from current levels. There is an urgent need to act now to decarbonize the iron and steel sectors. Business as usual is no longer sustainable.” Wu said “Mining companies will need to play an active role in cutting their operational emissions as well as invest in new high-grade mines and green pellet capacities to feed green steel. In turn, this will require five times the current supply of high-grade pellet feed, an equivalent to 750 million tonnes, translating into an investment of USD 250-300 billion.”Wu said “To achieve net zero by 2050, three-quarters of steel production will have to use low-carbon technologies, requiring the commercialization and uptake of new technologies such as DRI and molten oxide electrolysis running on renewable energy. Switching to clean energy will also require around 2,000 gigawatt of dedicated renewable generation capacity, equivalent to two-thirds of current global renewable generation capacity.” Wu added “A hydrogen ecosystem will also need to be developed for green steel, as Decarbonisation will require around 50 million tonnes per annum of competitively priced green hydrogen, with commercial viability versus conventional steelmaking routes requiring green hydrogen supply at USD 2 per kg.”Wood Mackenzie’s analysis sets out the revolution required at every stage of the industrial value chain, from mining to consumption, which presents an investment opportunity for operators as the industry works towards net zero by 2050.Wood Mackenzie’s analysis shows USD 800-900 billion will be essential to abate carbon from existing steelmaking infrastructure, such as setting up new hydrogen-based direct reduced iron and electric arc furnaces. From iron ore mining to steel manufacturing, the industry is highly carbon intensive. Iron and steel production emit a combined 3.4 billion tonnes of carbon annually, equal to 7% of global emissions.