Decarbonizing Steel Could Need $1.4 trillion by 2050 – Data Matters from Clidemy
𝑫𝒂𝒕𝒂 𝑴𝒂𝒕𝒕𝒆𝒓𝒔 from CliDemy – the Climate Academy is a series that provides actionable insights for key stakeholders based on relevant data points around climate and climate action.
Just imagine that number for a moment – about $1.5 trillion will be spent globally in decarbonizing the iron & steel sector over the next about 25 years.
That’s about $50-60 billion each year, year on year, for 25 years.
Sounds like a lot for just one industry, even for a global estimate. But those in the decarbonization sector will not be surprised, because this is the industry with the largest CO2 emissions amongst all – almost 10% of global total CO2 emissions!
Such a large investment means significant business opportunities too! Green steel transition will result in highly specialized opportunities along the business value chain, though the high-impact ones among them will be clustered around the processing of iron ore to steel – be prepared to hear terms such as DRI, Blast Furnace, Electric Arc Furnace quite often…There could be opportunities for greening in the rest of the value chain too (mining, transport, especially), but in our estimate, the impact from these on the sector decarbonization will be rather small.
For the green steel process, big innovations will require “deep tech” orientation – whether it is from a startup or a large corporate. See some examples in the startups Electra, Boston Metal…or the Hybrit collaborative effort of biggies such as Vattenfall, SSAB, LKAB…
For those of you engineering geeks keen on investing your brains & expertise on a decarbonization sector that matters, green steel could be a sector well worth reading up…though, I must warn you, this is a really hard to abate sector.
See my LinkedIn post on this topic.