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Steel is getting cleaner

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By illuminem briefings 🌎

· 2 min read


illuminem summarizes for you the essential news of the day. Read the full piece on The New York Times or enjoy below

🗞️ Driving the news: Steel, a fundamental element of the modern economy, is responsible for nearly 7% of worldwide carbon emissions
• Traditionally considered a hard-to-reduce emissions sector, significant developments over the past year indicate a shift in the steel production process

🔭 The context: Traditional steel production emits carbon in two main stages using coke and iron ore
• However, the rising adoption of electric arc furnaces, which use electric currents and scrap metal, is shifting the industry
• Now, 43% of new steel plants are embracing this method, up from 33% last year

🌎 Why does it matter for the planet: As major steel producers adopt  electric arc furnaces, there is a promising prospect of significant cuts in industry carbon emissions
• Electric arc furnaces emit just 14% of the CO2 of conventional blast furnaces

⏭️ What's next: The USA leads in electric arc furnace adoption, producing 70% of its steel this way 
• Europe is catching up with significant subsidies. Yet, major producers like China and India continue to lean on coal and conventional methods

💬 One quote: “There’s been some really good policy, believe it or not, coming out of D.C. that is incentivizing cleaner steel production” (Philip Bell, president of the Steel Manufacturers Association)

📈 One stat: More than 70% of American steel is now produced using electric arc furnaces, a percentage that is expected to rise further due to supportive policies like the Inflation Reduction Act

Click for more news covering the latest on mining & metals

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