Green steel? Look to hydrogen as the answer, BNEF says

Hydrogen made from clean power will be the cheapest way to bring emissions from steel production near zero by 2050, according to a BloombergNEF report. 

While making green steel with hydrogen requires a price premium now, the process will likely be cheaper than coal- or natural gas-based production by mid-century, though that would require building new plants, BNEF said. 

Geography will also determine the most cost-effective way to produce green steel. A country with abundant hydrogen supplies could make it the dominant fuel for steel production, while a nation rich in hydropower or another clean energy source could directly electrify steelmaking through a process called molten oxide electrolysis, BNEF said.

Other technologies to decarbonize steel include recycling, carbon capture, alternative iron-making processes and carbon offsets. A combination of these will likely be needed on a global scale, BNEF said.

“We expect that the cost of many of these technologies can fall by realizing economies of scale and greater efficiency,” BNEF said.

(By Yvonne Yue Li)