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Steel's roadmap to decarbonisation in an accelerated energy transition two-degree warming scenario

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09 July 2021

Steel's roadmap to decarbonisation in an accelerated energy transition two-degree warming scenario

Report summary

Steel is responsible for 7% of global CO2 emissions. This industry needs to decarbonise if the world is going to achieve a two-degree warming pathway aligned to the goals of the Paris climate agreement. • What does steel need to do to be compliant with a two-degree world? • How can steel decarbonise to this extent? • And why is it not the Wood Mackenzie base case that decarbonisation will be successful? We have explored an alternative scenario, beyond our base case, whereby steel follows a two-degree warming pathway. The challenge is immense. A revolution in steelmaking is required for success. It is not our base case; we don’t think it will happen. Read the report and decide if you believe steel can follow the AET 2.0 pathway…

Table of contents

  • Executive summary
    • Steel demand is unchanged from the base case
    • Carbon emissions from the steel sector must fall by 75%
    • Steel production methods must change
    • 1) Double the scrap use in steelmaking
    • 2) DRI gains high traction - Tripling production from current levels
    • 3) Reduce EAF emissions intensity by around 70%
    • 4) Reduce BF-BOF emissions intensity close to its theoretical minimum
    • 5) Capture and store 500 Mt of carbon dioxide – around 46% of the residual
    • Hydrogen demand from steelmaking
  • Conclusion

Tables and charts

This report includes 11 images and tables including:

  • Base case emissions by segment
  • AET 2.0 emissions by segment
  • A slight rise in scrap availability by 2050
  • Scrap consumption to improve significantly
  • DRI production in AET2.0 vs base case
  • Technology-wise DRI and EAF production
  • DRI trade – key importers and exporters
  • Global CCUS requirement vs usage efficiency
  • Region-wise CCUS requirement
  • Hydrogen demand at region level
  • Hydrogen demand in BOF v EAF

What's included

This report contains:

  • Document

    Appendix Methodology Inputs And Assumptions.pdf

    PDF 496.81 KB

  • Document

    Steel’S Roadmap To Decarbonisation In An Accelerated Energy Transition Two Degree Warming Scenario.xlsx

    XLSX 108.68 KB

  • Document

    Steel’S Roadmap To Decarbonisation In An Accelerated Energy Transition Two Degree Warming Scenario.pdf

    PDF 2.27 MB

  • Document

    Steel's roadmap to decarbonisation in an accelerated energy transition two-degree warming scenario

    PDF 1.05 MB