Primetals Technologies

Primetals Technologies, a pioneer in plant engineering and software production, is developing numerous green steel technologies. Headquartered in the UK, the plant-building company also innovates the digitalization of steel production processes. Dr. Alexander Fleischanderl, Head of Green Steel and Senior Vice President at Primetals Technologies offers his thought-provoking insights on the challenge facing the steel industry to become carbon neutral.

Why is Co2 Emitted During Steel Production using the Ld (BOF) Process?

Developed in Linz and Donawitz over 70 years ago, the LD process (BOF) is coal-based and accounts for around 70 percent of today’s global steel production. However, a good 90 percent of the CO2 is produced in coke plants, sinter plants, and blast furnaces during pig iron production, amounting to 1,770 kilograms of CO2 per ton. A further 170 kilograms of CO2 per ton of steel occur when oxygen is blown into the LD converter and refined into steel.

What Technical Possibilities Would the Steel Industry have today to Reduce Co2 Emissions?

The global steel community agrees that CO2 emissions from existing LD (BOF) steelworks can be reduced by a maximum of around 30 percent through material and energy efficiency measures and other optimization steps, but 90 percent of the steel production takes place in countries that have promised under the climate agreement to become CO2 neutral. We see three main pathways going forward. First, electric steelmaking uses electric arc furnaces in which scrap from recycling can be melted down. For this, however, electricity must also come, at least to a large extent, from renewable energy sources. Then, direct reduction plants, producing sponge iron from the ore, which could then be shipped, could utilize green hydrogen, replacing the natural gas used so far after a transition period. And finally, it would be possible to keep existing LD (BOF) steelworks running and store or convert the CO2 produced. This method is known as CCUS – Carbon Capture Utilization and Storage.

How Complex is Co2-Free Steel Production with Hydrogen?

“Digitization is essential in plants’ material and energy efficiency, from measurement technology to data management. People no longer look at individual plants but optimize the entire production process from raw material input to finished steel”

This technology is available, and our plants are already “hydrogen ready.” The problem rests in the enormous quantities of “green” hydrogen required. A direct reduction plant with an annual production of 2.5 million tons would need about 175,000 tons of hydrogen annually. To achieve this, an electrolysis unit with a capacity of 1.2 gigawatts would have to run continuously for more than 8,000 hours and generate an electricity requirement of 10 terawatt hours.

“Digitization is essential in plants’ material and energy efficiency, from measurement technology to data management. People no longer look at individual plants but optimize the entire production process from raw material input to finished steel.”

What is the Current Status of Most Steel Plants Worldwide?

As mentioned, most are producing steel using the conventional coal-based process. Every 15 years or so, a blast furnace requires a major upgrade—relining. This 15-year cycle also means that for about 70% of all blast furnaces, a decision will have to be made by 2030 whether to invest another 3-digit million-euro amount in another campaign or to convert directly to one of the green alternative process routes. The switch will probably only be made gradually and with huge investments: The International Energy Agency estimates it will take about $1.3 trillion by 2050, the equivalent of about 50 billion euros a year, not including the energy and hydrogen plants required worldwide. Primetals Technologies is a leading technology provider for all these transformation technologies. We are investigating an industrial demonstration plant in Linz, Austria, with Voestalpine and the mining company Fortescue for a unique fluidized bed-based direct reduction technology (HYFOR), including a smelting furnace for the production of green pig iron based on 100% hydrogen.

What Role can Digitalization play in the Conversion Process, and are there Enough Technicians?

Digitization is essential in plants’ material and energy efficiency, from measurement technology to data management. People no longer look at individual plants but optimize the entire production process from raw material input to finished steel. Digitization also facilitates plant maintenance, e.g., via QR codes on components, through which information can be called up immediately or spare parts can be ordered.

Are you Satisfied with the Level of Support for the Steel Industry over the Past 12 Months (At the EU Or Member State Level)?

The politicians have finally recognized that the steel sector is one of the most important to transition to green production if we want to see the pledged CO2 reduction levels in the EU. New mechanisms like the Emissions Trading System (ETS), the Carbon Border Adjustment Mechanism (CBAM), funding regulations like the Clean Steel Partnership (CSP) and Carbon Contracts for Difference (CCfD), and the intended green steel labeling to create a premium price segment – these are all instruments to drive the transition of the steel industry in the EU. Additionally, we have seen significant public funding commitments for ArcelorMittal, ThyssenKrupp Steel Europe, and Salzgitter. The transition process has been moving from pledges to execution mode. This transition toward execution makes Primetals Technologies confident that the EU steel sector will achieve the set targets for decarbonizing the steel industry.