Simon Nicholas

The steel technology transition away from coal has accelerated in recent years, with Europe leading the way, but two of Europe's leading steelmakers have recently appeared to be slowing their planned shift to lower emissions technology. This is partly because the cost of green hydrogen production hasn't declined as fast as expected, but investors and governments should question any steelmaker suggesting carbon capture and storage (CCS) will play a meaningful role in decarbonising steel. The cost of producing green hydrogen in Europe may result in a shift to imported green iron from locations that have cheap, clean power as well as suitable iron ore, but while this may involve effectively "offshoring" ironmaking jobs, it could protect far more European steelmaking jobs in the long run.

BHP continues to place high emphasis on carbon capture despite the growing likelihood that this technology will not play a major role in decarbonising coal-based steelmaking. The company may also be overestimating the long-term resilience of metallurgical coal demand. Unlike its peers, BHP is not targeting production of high-grade iron ore suitable for low-carbon steelmaking, a grade seeing growing demand.

Stegra, the world’s leading pioneer of green iron and steel, is considering expanding its investments in territories around the world, but Australia is not on its list.

Although Chinese steel demand is dropping, it is demand for lower-grade ore used for coal-consuming blast furnaces that is entering decline, while demand for higher-grade ore suitable for lower-carbon steelmaking is on the rise.

As more global rivals turn to green iron and steel production, the government’s Hydrogen Headstart funding and tax credits can help Australia compete.

As Bangladesh scales up its energy supply, its leaders face a choice: do they double down on imported fossil fuels, or invest in renewable energy instead?

China has moved back a deadline for its steel industry to reach peak carbon emissions from 2025 to 2030. However, peak steel emissions will still be achieved well before that and may already been reached. Peak steel emissions may already been reached

It has been reported that the Gwadar coal-fired power project, which was thought to be a prime candidate for cancellation following the two announcements, is to continue with higher priority. Further, the Gwadar plant is to be fuelled by imported coal.

The industry's largest emissions come from blast furnaces, the globally dominant process. Melting scrap in electric arc furnaces can produce new steel without coal or iron ore

China is supporting over 50% of coal power development in largest remaining project pipelines