- Hydrogen Breakthrough Ironmaking Technology (HYBRIT) is used by Swedish steel maker SSAB to obtain green hydrogen for the reduction process for producing sponge iron (Direct- Reduced Iron: DRI). This emits less CO2 than the blast furnace (BF) iron-making process. The next process is casting together with steel scrap in an Electric Arc Furnace (EAF) using green electricity to obtain green steel. Additionally, collaboration among SSAB and partners such as Volvo and Mercedes has been successful in designing and producing fossil-free vehicles, with a commercial launch planned for 2026.
- Luxemburg steel maker ArcelorMittal is using a Carbon Capture and Utilization (CCU) facility plant in Belgium to capture CO2 in the steel-making process and biologically convert it into advanced ethanol called "Steelanon" with the help of chemical manufacturer LanzaTech.
With the trend toward carbon neutrality, there will be more demand for green steel in various manufacturing sectors to produce eco-friendly products, especially demand for green steel in green building construction, green-based appliances and tools, and green vehicles.
Advanced technology adoption to enhance the steel industry in Thailand is not too far off, but firm collaboration among steel producers and support by government actions is needed. Since most of the green technologies introduced are based in developed countries and require very high investment, it may seem that reducing carbon emissions is more difficult in developing countries like Thailand. However, the key success factor for producing green steel is collaboration and communication between the Government and the domestic steel sector in terms of lower carbon emission pathways. There should therefore be direct efforts in working with the domestic steel sector to lower emission pathways. Such efforts should include setting emission targets and standards to develop effective tools for specific emission assessments and relevant regulations for the steel industry. Moreover, supportive measures to increase green steel production and demand should be launched, such as providing funding sources for new technology implementation for steel makers and granting privileges to green steel users.
One of the most crucial aspects of lowering emissions starts with cooperation with the nation's steel sector association as well. Thailand is already utilizing Electric Arc Furnace (EAF) technology, so it is only a matter of finding ways to generate enough green energy to be used in EAFs. Remaining constantly aware of other new technologies to invest in will allow the Thai steel industry to grow and strive for a higher renewable energy production rate. The association should also consider collecting more information about emissions produced so efforts can be closely monitored.
All of the suggestions mentioned above will be among the first steps of demonstrating the Thai steel industry's commitment toward carbon-neutrality and will lead to the next step in investment in advanced technology adoption.
Read the full report at… www.scbeic.com/en/detail/product/steel-green-tech-251023
Source: Siam Commercial Bank
