اخبار شرکت China's low-carbon steel transformation practice is increasingly becoming an important reference for global peers

I have observed that China's leading steel companies are showing impressive prudence and responsibility in advancing the low-carbon transformation process. Their careful assessment of investments in low-carbon metallurgical technology projects and their dedication to long-term sustainability are a source of confidence. I am confident that we will eventually witness a successfully transformed and truly sustainable global steel industry." On August 7, during the 14th China International Iron and Steel Congress, Edwin Basson, Director general of the World Steel Association, praised the contribution of Chinese steel in the global steel industry to promote low-carbon transformation in an exclusive interview with China Metallurgical News. China's steel industry's pioneering practices in the low-carbon transition are particularly critical, he said. It can be said that the transformation experience of China's steel industry is increasingly becoming an important reference for global peers. Learning from each other is the key to the coordinated transformation and development of the global steel industry
Basson said that the current global steel industry low-carbon transformation path technical route shows a significant "dual-track operation" characteristics. On the one hand, the short flow process of electric arc furnace with steel scrap as raw material is regarded as one of the key paths of smelting "green steel" with the lowest (current) carbon emission intensity; On the other hand, the BF - BOF long flow process based on iron ore and coke still occupies a large proportion, but its carbon emission intensity is higher than the former. "It should be acknowledged that the industry needs to face the reality of promoting low-carbon transformation at present, that is, there is no 100% universal carbon emission reduction technology solution, and the choice of technology route is still highly dependent on the existing equipment base and the resource endowment of the project location. Therefore, we will face differentiation and fragmentation of different countries and regions to promote low-carbon transformation for a long time." "He said.
In the face of this challenge, Basson believes that learning from each other is the key to the coordinated transformation and development of the global steel industry. In the field of carbon emission reduction, iron and steel enterprises need to reuse effective experience through benchmarking best practices to improve the overall transformation efficiency. "The current achievements of hydrogen rich carbon cycle oxygen blast furnace technology represented by China Baowu show that the traditional long process process has about 30% emission reduction potential, and similar conclusions have been verified by Japan Steel COURSE50 and other projects. The world's first 1.2 million ton hydrogen metallurgy demonstration project of Zhangxuan Technology of Hesteel Group has confirmed that direct reduced iron (DRI) technology of air-based shaft furnace can achieve 40%~60% carbon dioxide reduction per ton of steel. The interweaving of these cases is confirming the saying that 'deep carbon reduction in the steel industry needs a combination of technologies'." "He said.
Although technological breakthroughs are beginning to dawn, the steel industry still needs to be aware of the gap between demonstration projects and large-scale application. Basson further pointed out that the global steel industry still faces a key bottleneck to further promote the low-carbon transition - clean energy. The hydrogen metallurgy technology route relies on the production of hydrogen from water electrolysis driven by renewable energy, and the cost and scale depend on the progress of carbon reduction in the power system. At the same time, even if wind and photovoltaic power deployment accelerates, their volatile nature will still be difficult to support base load energy demand. "This is a reminder that the low-carbon transformation of the steel industry is deeply tied to a clean revolution in the energy system. The former requires new hydrogen-based steel mills, carbon capture facilities and clusters of electric arc furnaces, while the latter requires restructuring of electricity production and distribution networks. This makes a collaborative carbon reduction mechanism between the steel and energy sectors key to further carbon reduction." "Different countries and regions have different energy endowments, which also means that our energy efforts need to strengthen cooperation between different countries and regions to make clean energy flow fully and effectively around the world," Basson said.
A truly "sustainable steel company" needs to achieve a balance of three levels
As the world's largest steel producer, China has always placed green transformation at the core of the industry's development. After long-term and unremitting huge investment and continuous efforts, China's steel industry has achieved hard-won results in ultra-low emission transformation and extreme energy efficiency improvement. However, there is a long way to go before deep carbon reduction, and huge financial support is still needed to continuously promote low-carbon transformation. So, while undertaking the low-carbon mission, how should iron and steel enterprises effectively balance the continuous huge transformation investment and the necessary profit target?
In view of this topic, Basong explained to China Metallurgical News the way to balance the three levels of corporate "sustainability". "A truly 'sustainable steel company' as I understand it has to be financially sustainable, socially sustainable and environmentally sustainable at the same time." "This requires steel companies to have both a solid return on investment and profitability; Respect and rational use of human resources, positive impact on community development; Minimize the burden of its own operation on the ecological environment. Therefore, if steel companies want to achieve true 'sustainable development', they must go hand in hand in all three aspects."
When it comes to specific investment decisions, Basson believes that steel companies need to carefully evaluate the long-term value of each investment by looking beyond a single dimension. When measuring the effectiveness of an investment, it is not only about its environmental performance, but also about its ability to support a business that is financially, socially and environmentally resilient over the long term. "It is worth highlighting that, based on our understanding of the evolution of the steel production path, we believe there is a strategic window for investment in new production technologies, as indicated in our initial discussions. These technologies can not only bring significant environmental benefits, but also ensure the financial sustainability of steel enterprises. They are the key for steel enterprises to enhance their competitiveness in the future. Steel companies must plan and evaluate these transformation project investments with a high degree of rigor. Limited capital reserves require more careful calculation. Low-carbon transformation is a phased and systematic strategic deployment. Steel companies may need long-term planning to gradually guide their production systems steadily from their current relatively high-carbon model to a deeply decarbonized future. But at least we know there is a clear path to a low-carbon transition." "He said.
"In this context, the practices of China's steel industry are particularly important. Whether it is Hesteel Group's exploration of hydrogen application in direct reduction process, or the efforts made by other enterprises to reduce carbon emissions in blast furnace steelmaking, these cutting-edge explorations provide us with extremely valuable 'practical samples'. Through Worldsteel's platform, these valuable 'China experience' can be quickly refined and shared with its members around the world, accelerating the common progress of the whole industry." "When our members have specific needs, such as' how to run blast furnaces in a lower carbon environment ', Worldsteel is able to act as a facilitator, precisely connecting and recommending the best in this field, including companies from China and other countries. Subsequently, we focused on building a direct communication bridge between enterprises. This model ensures an efficient and vibrant flow of best practices, ultimately creating a knowledge sharing ecosystem driven by enterprise autonomy."
High barriers to the transnational circulation of steel scrap may lead to missed opportunities for in-depth emission reduction in the industry
Steel scrap resources are increasingly becoming the focus of the global steel industry chain game. At present, different countries and institutions show distinct differences in the transnational circulation of steel scrap based on their respective positions. For example, the Bureau of International Recycling (BIR) advocates open trade, while the Organisation for Economic Co-operation and Development (OECD) and the European Union prefer to impose restrictions on the cross-border flow of steel scrap.
In this regard, Basson says that the fundamental reason for the popularity of steel scrap today is that smelting it with clean energy has become the lowest carbon footprint process path in steel production. "In this race for 'green steel', steel scrap has naturally become the focus of global competition." "However, with this comes the practical dilemma that some countries are inclined to erect barriers and reserve scrap as a strategic resource for their own use. I am clearly opposed to this. Restricting the flow of steel scrap, currently a key raw material for 'green steel' production, to where it can be most useful would be a misstep on the global emissions reduction chessboard. I am more in favor of an efficient global circulation mechanism to ensure the free flow of steel scrap. Of course, there are headwinds, such as the policy preferences of regions such as the EU." According to Basson, the global trend of erasing barriers to steel scrap exports is on the rise, and this is a challenge we cannot avoid.
Where steel scrap is used to make low-carbon steel is not the core of the problem when looking at emissions reductions for the planet as a whole, Basson explains. Whether steel is made in Europe or the Americas or Asia, its contribution to the global climate is the same as long as the production process is deeply decarbonized. The key is to ensure that every ton of steel scrap can be used most efficiently and generate maximum benefits on a global scale. Artificial barriers to mobility can only lead to a misallocation of resources. Steel scrap accumulates in resource-rich regions, but is left idle because of insufficient local digestion capacity. At the same time, steel mills in other regions in desperate need of raw materials are facing the dilemma of "cooking without rice". This will not only cause a huge waste of resources, but also lead to a missed opportunity for the global steel industry to make the greatest contribution to the global steel industry emission reduction by using the existing steel scrap resources.
"If you could sum up the success or failure of the low-carbon transition of the global steel industry in one sentence, what would you emphasize?"
"Be patient." Basong responded to a final question from China Metallurgical News. Maintaining strategic focus, investing in the "right technologies" and continuing to explore their most efficient applications, he said, will steadily achieve the goal of low-carbon transformation of the industry and ultimately benefit society as a whole.