Agenda

Introduction

• Netzero target setting, high level ramifications for the steel sector.
• CO2 emissions classification (scope 1, 2 and 3)
• CO2 emissions by sector (contribution of steel making, 7-10%)

How and where steel is made, main players/corporates

• Describe the two processes to make steel, and their applications:
  – Integrated steelmaking (72% of global steel production): iron making in a blast furnace, steel in a blast oxygen furnace.
  – Electric steelmaking: direct reduction of ore into iron, and steel from iron / scrap metal in an Electric Arc Furnace
• Discuss global steelmaking capacity (80/20 rule), by country, by end-application, and outlook for future demand (including uncertainties, e.g. from competing, more sustainable solutions)
• Identify/introduce the global and niche specialist steel companies (e.g. Arcelor, Nippon, Tata, Dillinger etc.)
• Illustrate the global supply chain (from iron ore and metallurgical coal to steel and end-products) and the different competitive strategies (low cost/high volume – construction, high price – performance steels)
• Circular principles in the steel sector (current practices, new developments, in particular related to a steel intensive renewable sector like wind e.g. Ørsted)

Options to decarbonise steel

• Emission intensity by steel making process, sources and types of emissions (direct emissions – scope 1 e.g. fuel combustion for heat, reduction of iron ore, indirect emissions – scope 2, for example emissions from mining iron ore, purchased electricity for power)
• Technology options for the primary (iron and steel making) process:
  – CCS and keeping iron ore reduction as-is
  – Eliminate emissions through iron ore reduction with green hydrogen.
  – Steel making discuss technology options for oxygen steel plants and EAF
• Hydrogen: green or blue? For green H2: sources of supply
  – offshore wind, offshore floating wind, mega scale solar, electrolysers, other equipment and services required, location challenges.
• Promising emerging technologies for low carbon intensive steel (at lower TRL’s)
• Addressing secondary sources of emissions, as well as emissions elsewhere in the chain
• Fundamental constraints (e.g. DRI – EFA, shortage recycled steel, legacy assets – longevity of BF’s/retrofitting versus new plant, CCS <100% effective and geographical limitations, security of supply & defence)
• Other challenges to overcome (e.g. cyclical overcapacity, green steel certification – transparency in end-to-end supply chain emissions reductions, global competitive dynamics)

Green steel – economics, and supply chain considerations

• Cost drivers of green steel, cost of emissions reduction, importance of renewable electricity prices
• Cost comparison of GHG intensive steel versus green steel, now and future projections (and the associated assumptions)
• Global competition and commercial perspectives of green steel. For example: netzero users of steel – i.e. their indirect emissions from purchased steel i.e. scope 2. Cost increase of steel translated into increase in total cost of end-product, e.g. a car.
• First mover advantages, late adopters’ strategy
• Competition from alternative green materials, e.g. aluminium, engineered wood.
• The outlook for the extractive industries, global metallurgical coal and iron ore consumption
• Extractive sector netzero initiatives and challenges
• Supply chain considerations of green steel (e.g. hydrogen supply agreements, security of supply, co-investment & joint venture partnering, defence sourcing strategy)
• Possible transition plans (staged reduction in emissions, e.g. [1] reduced energy usage, recycling heat, renewable energy [2] retrofitting low carbon technologies, [3] Wide scale adoption of transformative low or zero carbon technology that is cost competitive) – examples

Green steel projects – overview and discussion, deep dives into case studies

• Description/discussion of pilot plants currently in operation, including projections on cost of green steel.
• Plants under development/planning process (consenting, implementation, construction) – locate live applications on global portals, nuances an stakeholder feedback seek & share videos for major projects
• Project pipeline/outlook
• Linkages to regeneration of existing, obsolete steel making facilities (e.g. Scunthorpe, Teesside)
• State sponsored initiatives (ULCOS program (Ultra low CO2 Steelmaking – EU), National COURSE50 (Japan, e.g. DRI electrolysis)
• Topics/issues/choke points in need of more attention (e.g. policy support, investment, R&D)

Policy and regulatory perspectives – global initiatives and national nuances

• IPCC perspective
• United Nations perspective
• IEA outlook
• EU Green steel directive (including import restrictions on CO2 intensive products)
• National nuances: Canada, UK, USA, Australia, China, Japan, South Korea, Finland Nordics, Germany

Key stakeholder perspectives

• Iron ore and metallurgical coal producers
• National steel making companies.
• Large consumers of steel (car manufacturing, shipping, offshore wind, ‘new’ O&G, construction)
• NGO’s
• Investors
• Irena

10 points to consider when investing in a green steel project

• List of things to address (e.g. permitting, operational requirements, HSE)

Summary, wrap up, final questions