In this article, you will learn more about the background and increasing importance of Green Steel in the modern steel industry. We provide an overview of available technologies and practices and explain the ecological benefits as well as the economic potentials of Green Steel. We also illuminate existing challenges and potential future prospects of this sustainable steel.
Keyfacts
Green Steel is climate-neutral or low CO2 emissions steel produced using innovative environmentally friendly technologies. Conventional steel production is highly energy-intensive and emits large amounts of greenhouse gases.
Swiss Steel Group's Green Steel offers the opportunity to reduce CO2 emissions by up to 83% compared to the global average of steel production. Key factors include the use of green electricity, hydrogen, biogas, and the circular economy through scrap recycling.
Swiss Steel Group utilizes 93% recycled scrap as raw material and low CO2 electricity for environmentally friendly steel production.
Green Steel opens new markets and competitive advantages for particularly sustainable-minded customers.
Extensive investments in infrastructure for providing affordable renewable electricity are necessary for scaling. Green Steel is already being used in many industries such as automotive, machinery, and medical technology.
What is Green Steel?
The term "Green Steel" refers to climate-neutral or low CO2 emissions steel produced using innovative technologies and processes to minimize the environmental impact of steel production. Unlike conventional steel production, which is highly energy-intensive and emits considerable amounts of greenhouse gases, Green Steel aims to reduce the CO2 footprint of the entire value chain.
From our comprehensive portfolio of Green Steel, our customers can choose the most suitable product for their path to a sustainable future. Therefore, Swiss Steel Group's environmentally friendly Green Steel is already utilizedtoday in numerous industries and product areas.
In the automotive industry, for example, Green Steel is used for drive shafts and crash management components. Through optimized material properties for specific applications, material efficiency increases can be achieved in some cases, indirectly leading to weight reduction and emission savings during vehicle operation.
In mechanical engineering, Green Steel provides the highest strength for components subjected to high loads. The good formability and weldability also enable efficient manufacturing processes.
Green Steel is also used in medical technology, where environmentally friendly high-tech steel is required, for example, for surgical instruments. With their innovative power, Swiss Steel Group constantly discovers new application areas for sustainable materials, thereby driving the green transformation of further key industries forward.
Background & Importance of Green Steel
The steel industry is a significant economic sector and plays a crucial role in the global economy due to the versatile applications of steel as a material. However, conventional steel production is extremely energy-intensive and causes elevated levels of greenhouse gas emissions. According to estimates, the steel industry is responsible for around 7-9% of global CO2 emissions. In view of the growing pressure to reduce greenhouse gas emissions and the need to mitigate climate change, steel manufacturers must find alternative ways to make their production more environmentally friendly.
Green Steel represents a promising solution to make steel production more climate-friendly and achieve ambitious decarbonization goals.
Production of Green Steel
Traditionally, steel was mainly produced using blast furnace technology, by smelting iron ore with coke. This reduces iron ore to pig iron with high energy input and is then further processed into steel. Green Steel, on the other hand, is predominantly produced through an electric steelmaking process: in the electric arc furnace, scrap is melted using electrical energy and graphite electrodes. In combination with electricity from renewable sources or nuclear power, this can drastically reduce CO2 emissions.
In the future, hydrogen-based reduction will play an increasing role: instead of coke, pure hydrogen reduces the iron ore, enabling almost emission-free steel production. Swiss Steel Group relies 100% on electric arc furnaces and scrap as raw material for steel production.
According to a study by Swiss Steel Group, CO2 emissions are around 83% below the industry average by using electric arc furnace technology. However, there is still potential here to reduce the CO2 footprint even further, which Swiss Steel consistently exploits.
To further reduce the climate impact, Swiss Steel Group focuses on three central levers:
Replacement of natural gas with alternative energy sources: In the reheating and heat treatment furnaces, natural gas is to be gradually replaced by low CO2 alternatives such as primarily green electricity, hydrogen, or biomethane.
Use of 100% green electricity: Swiss Steel Group exclusively sources electricity from renewable sources for the production of Green Steel Climate +.
Use of high-alloyed scrap instead of primary alloys: To alloy stainless steel, alloying elements from scrap are increasingly used instead of energy-intensive primary alloys.
Swiss Steel Group also drives the circular economy through vertical integration. With the innovative Ugi'Ring process, it will be possible to recover and recycle alloying elements such as chromium, nickel, and molybdenum from waste and by-products. This makes the electric arc furnace route even more efficient and drives the decarbonization of the steel industry forward.
The Electric Arc Furnace (EAF) route is one of the main methods for producing Green Steel. Steel is produced from scrap or directly reduced iron using electricity. Compared to the traditional blast furnace route, utilizing an EAF does not require solid carbon as a reducing agent, therefore leading to a significant reduction in CO2 emissions, especially when the required electricity comes from renewable or low-emission energy sources. Additionally, the EAF route allows efficient use of recycled scrap as raw material, contributing to the circular economy. Scrap is the central raw material for using an EAF. Swiss Steel Group relies on steel scrap as raw material for its steel production. By recycling scrap, the dependence on new iron ore, which is obtained through mining, is reduced. In 2022, the company recycled 2.0 million tons of scrap, making it one of the leading European recycling companies. The circular economy through scrap recycling leads to higher resource efficiency and contributes to the conservation of natural resources.
The flexibility of the EAF process also allows production to be adjusted to fluctuating energy markets and can, under certain conditions, contribute to stabilizing the power grid, especially in energy systems with a high share of renewable energies.
Benefits & Challenges
The transition to Green Steel promises significant ecological benefits: greenhouse gas emission reduction, reduced energy consumption, and conservation of natural resources. At the same time, new market opportunities and competitive advantages are discovered for environmentally conscious customers. discovered for environmentally conscious customers. discovered for environmentally conscious customers.
According to its own estimation, Swiss Steel Group's CO2 emissions are around 83% below the industry average. Thus, the company makes a valuable contribution to climate protection.With the Green Steel portfolio, the company can position itself clearly and secure competitive advantages over competitors with less sustainable production.
Yet, the transition also poses challenges. In particular, the availability of affordable and sustainable electrical energy. Investments are needed to electrify the plants or make them suitable for the use of hydrogen and other alternative gases. Also, the availability of green hydrogen is currently limited. Here, Swiss Steel Group relies on progress in the political framework setting and the expansion of necessary infrastructure.
The procurement of sufficiently high-quality scrap for steel production is also becoming increasingly demanding. Together with partners, Swiss Steel Group is working intensively on solutions for improved scrap recycling and the recovery of alloying elements.
Swiss Steel Group is determined to further advance sustainable steel production and take an international leadership role in Green Steel. The company sees itself as a significant innovation driver on the path to a decarbonized steel industry.
Future prospects & innovations
Green Steel is a forward-thinking solution to make steel production climate-friendly and significantly reduce its environmental impact. Despite existing challenges in infrastructure and costs, Green Steel has great potential to contribute significantly to the decarbonization of the industry. With continuous research and development, processes are constantly being optimized and made more efficient.
Swiss Steel Group underscores its commitment to decarbonized steel production by participating in the Science Based Targets Initiative (SBTi). This is an initiative developed by environmental organizations that supports companies in setting science-based climate goals by 2050.
Furthermore, the group participates in the Carbon Disclosure Project (CDP), a non-profit organization that advocates for more transparency about emissions along the value chain. Through these initiatives and partnerships, Swiss Steel Group continuously advances its efforts to decarbonize steel production.
To overcome the remaining obstacles on the path to a fully decarbonized steel industry, collaboration between governments, industry, and research institutions is essential. Only through close cooperation can challenges such as the expansion of hydrogen infrastructure, the availability and affordability of green electricity, and high-quality scrap procurement be addressed. At the same time, investments and innovations from the industry are necessary to ensure the competitiveness of sustainable steel.
