Forging the Future: Innovations and Best Practices in Sustainable Steel

 

During PEP’s November Member Breakfast, leaders from SSAB Americas, Outokumpu, and AM/NS Calvert, experts explored how companies are rethinking traditional steel production methods. The conversation focused on current sustainable practices, challenges faced by the industry, and the importance of balancing environmental responsibility with economic viability. 

The steel industry is undergoing a significant transformation as environmental, economic, and social pressures push companies to adopt more sustainable practices. With steel responsible for approximately 8% of global carbon dioxide emissions, innovation in this industry is essential to combat climate change while maintaining efficiency and profitability. 

The Need for Change in Steel Production 

Steel is a vital material for industries like construction, automotive, and manufacturing. However, traditional production methods, such as using blast furnaces, rely heavily on coal, resulting in 70% of the industry’s greenhouse gas (GHG) emissions. While the U.S. steel industry has a lower carbon footprint compared to global players—registering 7% of CO2 emissions domestically—it still faces immense pressure to innovate. Stakeholders, customers, governments, and lending institutions are increasingly demanding that steel companies adopt sustainable practices. 

Sustainable Practices Shaping the Industry 

A key innovation in sustainable steel production involves the use of Electric Arc Furnace (EAF) technology. Unlike traditional blast furnaces, which rely on raw iron ore and coal, EAF technology melts scrap steel to produce new steel. This method significantly reduces emissions but comes with its own challenges, such as the limited global supply of scrap steel. 

John Howley, Director of Environmental and Sustainability Business Development at SSAB Americas, highlighted the U.S.’s advancements in EAF technology, noting that the country has one of the lowest carbon footprints in the steel industry. SSAB Americas is also working on SSAB Zero, a technology designed to reduce emissions near zero by targeting each source of CO2 emissions and implementing tailored solutions. 

Robert Pinckard, Team Manager of Environmental at AM/NS Calvert, discussed the use of hot briquette facilities to reduce the carbon intensity of production. These facilities create briquettes, a form of compressed raw materials, as a substitute for higher-emission materials in steelmaking processes. 

Sven Weber, Head of Strategy and Sustainability at Outokumpu, explained that the company’s approach involves reducing direct emissions through enhanced monitoring systems. Their innovative technology alerts them to unusual emission patterns, allowing for immediate mitigation. Outokumpu boasts one of the industry’s lowest carbon footprints, reflecting its commitment to sustainability. 

Renewable Energy Integration 

Steel companies are also investing in renewable energy sources like wind and solar to power their operations. While solar energy is a valuable addition, challenges such as cloudy days limit its impact as a sole solution. Grid integration and partnerships with renewable energy providers allow facilities to incorporate wind and hydro power, reducing reliance on fossil fuels. 

Outokumpu is even exploring partnerships with energy providers for micro-nuclear solutions, aiming to further decarbonize operations while maintaining focus on steel production. 

Green Hydrogen Initiatives 

SSAB is pioneering hybrid steel processes in Sweden, leveraging green hydrogen as a replacement for coal in steelmaking. This technology has the potential to revolutionize the industry by providing a cleaner energy source for high-temperature processes. While still in its pilot stage, this innovation represents a significant leap forward in efforts to reduce emissions globally. 

Balancing Sustainability, ROI, and Community Benefits 

Implementing sustainable practices in steel production often involves significant upfront investments. However, these efforts can yield substantial long-term returns by reducing energy consumption, cutting costs, and satisfying stakeholders’ increasing demand for greener operations. 

Sven Weber emphasized that even when direct economic benefits are not immediately visible, companies can focus on the social or environmental pillars of sustainability. For instance, excess heat generated during production can be repurposed to benefit local communities, reinforcing the industry’s role as a responsible corporate citizen. 

John Howley highlighted the importance of thinking outside the box, citing trials using crumb rubber from tires as a substitute for certain materials in production. Such creative approaches are essential to achieving meaningful reductions in GHG emissions. 

Key Challenges in Sustainable Steel 

Despite significant progress, the industry faces ongoing challenges. Infrastructure limitations, such as access to renewable energy grids, restrict the ability of steel companies to fully transition away from fossil fuels. Additionally, the availability of scrap steel remains insufficient to meet global demand, necessitating the development of alternative sustainable inputs. 

Carbon capture and storage (CCS) technologies offer another potential solution, but widespread adoption is still hindered by economic and logistical constraints. Collaboration between governments, energy providers, and industry leaders will be crucial in overcoming these barriers. 

The Future of Steel 

As the demand for sustainable materials grows, the steel industry must continue to innovate and adapt. By integrating technologies like EAFs, green hydrogen, renewable energy, and advanced monitoring systems, companies can significantly reduce their carbon footprint while remaining competitive. 

The industry’s commitment to sustainability will not only benefit the environment but also create new economic opportunities and strengthen relationships with stakeholders. With leaders like SSAB Americas, Outokumpu, and AM/NS Calvert paving the way, the future of sustainable steel looks promising. 

For organizations in related industries, the takeaway is clear—embrace innovation or risk being left behind. The steel industry’s progress serves as a powerful example of how sustainability and profitability can go hand in hand when driven by creativity, collaboration, and a shared commitment to the greater good.