Steel Industry Lags in Renewable Energy Usage, Survey Finds

Steel production is one of the most carbon-intensive sectors, responsible for approximately 7% of global CO2 emissions—equivalent to the emissions of countries as large as India. The process primarily uses coal-fired blast furnaces, which emit around 2 metric tons of CO2 for every ton of steel produced. Although alternative technologies like electric arc furnaces (EAFs) exist, which can utilize renewable energy sources, adoption rates remain low.

The survey highlighted Sweden’s SSAB as the best performer, sourcing 19% of its energy from renewables. In stark contrast, South Korea’s Hyundai Steel, Dongkuk Steel, and Posco, were among the biggest laggards, with nearly zero incorporation of renewable energy in their operations despite using EAFs that could potentially be powered by green energy.

Laura Kelly, ASL’s strategy director and the author of the survey, criticized the industry’s slow adoption rates, attributing them to a narrative that steel is a “hard to abate” sector. She argued that the main barrier is not technological feasibility but cost and existing investments in fossil fuel infrastructure.

Companies like India’s JSW Steel and China’s Baosteel reported minimal renewable energy use but have announced plans to increase their reliance on cleaner energy sources in the coming years. As global carbon pricing initiatives begin to take effect, steelmakers will face increased financial and strategic pressures to accelerate their energy transition or risk falling behind in an increasingly eco-conscious market.

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