<p>Singapore: The world's biggest steelmakers are falling behind in the shift towards low-carbon production, with some still entirely dependent on fossil fuels for their energy, a survey of 18 leading firms showed on Friday.</p><p>Steel is responsible for 7 per cent of global carbon dioxide emissions, around the same as India, with coal-fired blast furnaces producing 2 metric tons of CO2 for each ton of output.</p><p>Alternative technologies are available, including electric arc furnaces (EAFs) that can be powered with renewables, and efforts are underway to produce iron using "green hydrogen" rather than coal.</p><p>But some of the industry's biggest names still relied on fossil fuels for 99% of their energy over 2022-2023, the Sydney-based climate group Action Speaks Louder (ASL) said.</p> .Centre says low steel prices will hurt capacity creation.<p>Steel is considered a "hard to abate" sector, but the main obstacle is affordability, said Laura Kelly, ASL's strategy director and the survey's author.</p><p>"This messaging about 'hard to abate' is still implying it is not technologically possible," she said.</p><p>The best performer was Sweden's SSAB, which sourced 19% of its energy from renewables, while some of the biggest laggards were in South Korea.</p><p>The share of renewables in the energy use of Hyundai Steel , Dongkuk Steel and Posco stood at zero or close to zero, even though they produce large quantities of steel through EAFs. None of the firms responded to requests for comment.</p><p>Kelly said some firms have vested interests in maintaining the status quo because of investments in fossil fuel infrastructure, including import terminals and pipelines.</p><p>India's JSW Steel sourced 0.4% of its energy from renewables. It aims to run all its steel operations using clean energy and waste gas by 2030, said chief sustainability officer Prabodha Acharya.</p><p>Baosteel, China's biggest steelmaker, also sourced 0.4% of its energy from renewables in 2022. The company told Reuters it was drawing up new clean energy targets.</p><p>Steelmakers will come under growing pressure to shift to cleaner energy as carbon pricing initiatives come into force.</p><p>"If it is not hurting them financially now, it is hurting them strategically because they are lagging on that transition plan," Kelly said. </p>
<p>Singapore: The world's biggest steelmakers are falling behind in the shift towards low-carbon production, with some still entirely dependent on fossil fuels for their energy, a survey of 18 leading firms showed on Friday.</p><p>Steel is responsible for 7 per cent of global carbon dioxide emissions, around the same as India, with coal-fired blast furnaces producing 2 metric tons of CO2 for each ton of output.</p><p>Alternative technologies are available, including electric arc furnaces (EAFs) that can be powered with renewables, and efforts are underway to produce iron using "green hydrogen" rather than coal.</p><p>But some of the industry's biggest names still relied on fossil fuels for 99% of their energy over 2022-2023, the Sydney-based climate group Action Speaks Louder (ASL) said.</p> .Centre says low steel prices will hurt capacity creation.<p>Steel is considered a "hard to abate" sector, but the main obstacle is affordability, said Laura Kelly, ASL's strategy director and the survey's author.</p><p>"This messaging about 'hard to abate' is still implying it is not technologically possible," she said.</p><p>The best performer was Sweden's SSAB, which sourced 19% of its energy from renewables, while some of the biggest laggards were in South Korea.</p><p>The share of renewables in the energy use of Hyundai Steel , Dongkuk Steel and Posco stood at zero or close to zero, even though they produce large quantities of steel through EAFs. None of the firms responded to requests for comment.</p><p>Kelly said some firms have vested interests in maintaining the status quo because of investments in fossil fuel infrastructure, including import terminals and pipelines.</p><p>India's JSW Steel sourced 0.4% of its energy from renewables. It aims to run all its steel operations using clean energy and waste gas by 2030, said chief sustainability officer Prabodha Acharya.</p><p>Baosteel, China's biggest steelmaker, also sourced 0.4% of its energy from renewables in 2022. The company told Reuters it was drawing up new clean energy targets.</p><p>Steelmakers will come under growing pressure to shift to cleaner energy as carbon pricing initiatives come into force.</p><p>"If it is not hurting them financially now, it is hurting them strategically because they are lagging on that transition plan," Kelly said. </p>