Full Title: Green Iron Corridors: Transforming the Steel Supply Chains for a Sustainable Future
Author(s): Rachel Wilmoth, Quailan Homann, Chathurika Gamage, Lachlan Wright, Kaitlyn Ramirez, Sascha Flesch, Thanh Ha, Joaquin Rosas, and Natalie Janzow
Publisher(s): Rocky Mountain Institute
Publication Date: September 30, 2024
Full Text: Download Resource
Description (excerpt):
To reduce emissions and meet increasing global demand, we must shift our approach to making steel. The steel sector currently produces 11% of global CO2 equivalent emissions, and demand is expected to increase between 12% and 36% by 2050. To meet new demand while reducing emissions, we must ramp up renewable hydrogen-based ironmaking this decade.
Green iron corridors can offer significant benefits along the supply chain including cost savings, increased efficiency, and economic opportunity for both importing and exporting countries. Restructuring half of primary steelmaking to use green iron could save > $25 billion annually across the 10 highest priority importers at today’s prices, which translates to a savings of $80-125 per ton of steel. Further, fast-tracking corridor opportunities between existing and emerging iron exporter regions to the EU and Asia could abate an annual ~30 million tons of CO2 by 2030.
This report, by RMI and the Green Hydrogen Catapult, establishes an assessment framework and outlines challenges, opportunities, and recommendations to help make green iron corridors a reality and decarbonize the steel sector this decade.