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Demystifying low carbon steel manufacturing

Sponsored: The challenge of decarbonizing heavy industry is significant. But “hard-to-abate” can be conquered with the right mix of approaches—and mindset. Read More

(Updated on July 24, 2024)

Steel coils at U. S. Steel’s Big River Steel facility in Osceoloa

This article is sponsored by U. S. Steel.

When I worked at Dell, I often felt I was on the front line of making an essential industry more sustainable. During my tenure of over a decade, we collaborated across functions to increase the percentage of recycled materials in our products, boost our recovery of used electronics and transition our production capability to rely more on renewable energy. But when I started at U. S. Steel, I was humbled by the new challenge. Leading sustainability for a “hard-to-abate” industry is unlike anything I’ve seen in my career. 

I joined U. S. Steel because I appreciated how this over 120-year-old company was taking real steps to move forward. It’s an organization that’s experimenting, innovating and investing to break down all the barriers to decarbonization and create a more sustainable approach to heavy industry. 

Steel is foundational to our society  

Steel, cement and industrial chemicals are responsible for 40 percent of direct global carbon emissions. Steel, cement and chemicals also form the cornerstone of modern, global life. There is simply no substitute — at scale — for the contribution these industries make to infrastructure, commerce and even innovation. The widespread adoption of a clean fuel such as hydrogen, for example, would rely on a massive network built with steel, cement and chemicals. That’s why it’s so essential that we decarbonize heavy industry, and why the difficulty level of the task cannot deter us in our efforts. 

A multi-faceted challenge

According to most accounts, the two main barriers to decarbonizing steel, cement and chemicals are technical and economic. On the technical side, hard-to-abate industries earn their label through processes that are both energy-intensive and produce carbon during manufacturing. Economically speaking, these industries are heavily commoditized, which poses challenges to capital investment in innovation and transformation. 

If these two factors weren’t enough, I recommend adding a third. There’s a cultural dimension to making heavy industry more sustainable. Decarbonization is a global issue, which means different countries and regions will have varying opportunities for development. Countries with an appetite for decarbonization may not have the funds to support heavy industry or vice versa. They will also have different attitudes about government involvement versus the role of business and even different expectations about how to manage change over long timelines.  

In my experience working in sustainability, I’ve seen the most success when all three aspects are considered. It’s my belief that we’ll meet our emissions goals if we fully embrace the full complexity of the challenge, even if we need take on each element on its own terms.

Bringing the heat without the carbon

A conventional steel blast furnace operates at 1,100 degrees Celsius. Conventionally made cement requires 1,400 degrees Celsius. Even lower temperature heavy industry processes clock in at over 300 degrees Celsius. Currently these processes, which require large amounts of energy, are carbon intensive. 

But there are low-carbon energy alternatives emerging. Investing in hydrogen is the most promising, even if the expense will all but require heavy government investment. I believe the Bipartisan Infrastructure Law is a good start in building the hydrogen network we will need to meet emissions targets. 

There are also unavoidable process emissions of CO2 that arise from physically transforming materials. In these cases, mitigation is more realistic than elimination. Once scaled, carbon capture, utilization and storage (CCUS) is another promising technology, and one that is farther along than hydrogen. The Inflation Reduction Act will most certainly help to accelerate development of CCUS as well help move existing technologies up the maturity curve. 

Policy changing the financial equation

At present, the capital investments needed to achieve decarbonization can be an insurmountable barrier. Some reports project it would require upwards of $1.5 trillion to decarbonize the steel industry alone — a cost that most companies cannot shoulder on their own. 

But government investment and increasing public demand for sustainable business practices is changing the equation. We are seeing a trend toward recalculating what it means for businesses to succeed as they invest in a future that serves both capital and the environment. 

Accept progress over perfection

As it’s a global issue, decarbonization will, by its very nature, require a highly collaborative, cross-cultural approach. More than 140 countries have set net-zero targets. To reach our commitments, each of us must continue to take action and accept some messiness along the way. There is still much to test and learn when it comes to decarbonization and carbon capture technology in heavy industry, but sharing our trials and errors can lead to effective solutions. It’s the old expression “two heads are better than one.” 

If we can focus on progress over perfection, I am hopeful we can create meaningful change. Regardless, the need for steel, cement and chemicals cannot be wished away so we must be persistent in our quest.

An exterior shot of U. S. Steel’s facility in Košice, Slovakia

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An exterior shot of U. S. Steel’s facility in Košice, Slovakia. Image courtesy of U. S. Steel.

How U.S. Steel is taking on decarbonization 

On the technical side, U.S. Steel is making major investments in electrical steel partially powered by solar energy and made with up to 90 percent recyclable scrap. For steel that requires traditional blast furnaces, we’re partnering with CarbonFree to pilot their SkyCycle technology, which will capture and mineralize up to 50,000 metric tons of CO2 annually from our integrated plant in Gary, Indiana. In that same spirit of collaboration, the U.S. Department of Energy awarded funding to GTI Energy to test the readiness of its ROTA-CAP carbon capture technology for commercial scale-up and widescale deployment at our facility in Braddock, Pennsylvania. 

In addition to electrical steel, our new DR-Grade iron operation in Keetac will produce low-silica iron ore pellets, a vital component to lower emission steelmaking. We’re also working with our customers to help them meet their own sustainability goals. Environmental Product Declarations (EPDs) on all North American flat-rolled products give our customers the transparency they need to better understand the product carbon footprint of their products.

Changing how and where we show up

U. S. Steel is a proud member of ResponsibleSteel, which offers the most comprehensive, inclusive and trustworthy certification for sustainable steel today. Along with certification, ResponsibleSteel is providing a vital forum for how we move our industry forward. So while I’m in the business of sustainable steel, I believe it’s important that I, along with representatives from other heavy industry, find forums to compare notes and exchange ideas. 

Decarbonization is a complex and challenging topic. Solutions will not come easily, cheaply nor quickly. We need to be out in the world, telling our story, embracing the difficulty of the road ahead and collaborating with stakeholders at all levels of society.

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