The report, prepared by the international think tank Global Energy Monitor (GEM) using data from the Global Steel Plant Tracker, states that steel production with low-emission electric arc furnaces (EAF) accounts for 49 percent of the projects currently under construction or announced. This ratio was recorded as 33 percent in 2022 and 43 percent in 2023.
Decline in coal-based steel production
According to the report, 93 percent of newly announced steelmaking capacity is produced with EAF, while new and decommissioned plants are avoiding the use of coal-based steelmaking. Current forecasts indicate that by 2030, 36 percent of the world's operating steelmaking capacity will be supplied by EAF production. This is slightly below the target set by the International Energy Agency (IEA) for a net-zero emissions scenario, but suggests that the sector could come close. The IEA has stated that EAF production should account for 37 percent of total production by 2030.
While China has a large share of the current steel production capacity, India is at the forefront as the largest developer of future iron and steel plants, especially in coal-based steel production.
Global Energy Monitor is issuing a preliminary warning that the expansion of new coal-based steelmaking capacity in several countries, notably India, is incompatible with net zero emissions targets, and that these plants could become obsolete assets in the future.
“Never before have so many low-emission steelmaking facilities been under development,” said Caitlin Swalec, Heavy Industry Program Director at Global Energy Monitor. At the same time, coal-based capacity expansion is worrying. What the industry needs now is to realize these clean development plans and move away from developing coal-based plants,” says Caitlin Swalec, Program Director at Global Energy Monitor, commenting on the analysis and sharing her positive expectations about the green steel transformation.
Low-emission electric arc furnace use boosts steel production worldwide
Worldwide, 49 percent of steelmaking capacity announced or under construction is using low-emission electric arc furnaces. This capacity increase increases the steel industry's chances of achieving net zero emission targets.
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