New Report Says Carbon Capture Will Not Be Critical In Steel Decarbonization

New Report Says Carbon Capture Will Not Be Critical In Steel Decarbonization - Carbon Herald

A new report by the Institute for Energy Economics and Financial Analysis (IEEFA) says that carbon capture will not be critical to the decarbonization of steel. 

Namely, the report argues that, due to the high costs and relatively low capture rates of carbon capture, utilization and storage (CCUS) technology, the climate solution is not likely to play a key role in making steel more environmentally sustainable. 

Another reason the report from IEEFA listed was the technology’s history of underperformance. 

The global steel sector, which emits roughly 8% of the world’s total CO2 emissions, is a notoriously hard-to-abate industry, which has not seen much progress in a transition to greener production.

Despite the recent breakthrough adoption of the carbon capture and utilization (CCU) by US Steel in its landmark partnership with CarbonFree, by and large, analysts say the commercial-scale adoption of CCUS for the decarbonisation of blast furnaces has been dismal.

Furthermore, the report goes on to say that CCUS is being replaced by alternative technology, as is the use of blast furnaces by direct reduced iron (DRI)-based steelmaking, which, instead, relies on green hydrogen. 

Relevant: CarbonFree And US Steel Sign Landmark Carbon Capture Deal

“CCUS for steel has made little or no commercial progress in Europe. If steel CCUS cannot make progress in Europe where there is a significant carbon price, it cannot be expected to make headway in developing Asia, the seat of major steel demand growth,” the IEEFA report says.

Even so, coal-fired blast furnaces have far lesser chances of being replaced by other types of technology, particularly in Asia, which means they will still likely rely on carbon capture for decarbonization.

With that in mind, Prabodha Acharya, chief sustainability officer at India’s JSW Group, expressed a differing opinion on the future of CCUS in the context of decarbonizing steel, saying that the climate technology will in fact be the solution that brings us to net zero.

Read more: DMX Carbon Capture Process At Dunkirk Steel Plant Exceeds Expectations, Axens Says

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