<p>Mumbai: Continued investments in new coal-based steelmaking capacity and planned relining of blast furnaces to extend their lifespan threaten the industry’s clean energy transition, according to Global Energy Monitor’s (GEM) sixth annual report on the sector.</p><p>The report states that 319 million tonnes per annum (mtpa) of coal-based blast furnace capacity worldwide has either been announced or is under construction — a five per cent increase over the previous year.</p><p>Along with an additional 80 mtpa of capacity slated for relining, new blast furnace investments significantly outpace the 141 mtpa of currently operating blast furnace capacity that has announced retirement plans. As a result, global blast furnace capacity is projected to register a net increase of 88 mtpa by 2035.</p>.Steel giants still far from green.<p>With nearly 88 per cent of steel sector emissions generated from coal-based production and the industry accounting for 11 per cent of global CO2 emissions, the report stresses that investments in greener technologies are critical for the industrial transition towards net-zero emissions.</p><p>However, progress remains slow. The share of lower-emission electric arc furnace (EAF) steelmaking technology increased only marginally over the past year, rising from 33 per cent to 34 per cent of global operating capacity.</p><p>In ironmaking, only 10 per cent of capacity currently uses direct reduced iron (DRI) technology instead of emissions-intensive coal-based blast furnaces. Of this, just 2 per cent — or 4 mtpa — relies on green hydrogen as the primary reductant instead of fossil fuels, making net-zero compatible production extremely limited.</p><p>Astrid Grigsby-Schulte, Project Manager of the Global Iron and Steel Tracker at Global Energy Monitor, said, “The outlook remains bleak for steel’s transition away from fossil fuels. The ball is in India and China’s court, as the two countries account for 86 per cent of planned new coal-based capacity. Pivoting to lower-emission technologies and making better use of existing EAF capacity are immediate steps that could significantly alter the direction of the global steel industry.”</p><p>India alone is developing more than 60 per cent of the world’s new coal-based blast furnace capacity, while 93 per cent of its ironmaking capacity under development is based on coal-intensive technology. However, only 5% of the proposed projects have actually broken ground, leaving scope for policy intervention.</p><p>In China, nearly 94 per cent of existing blast furnace capacity has no retirement plans, and the country remains the second-largest net developer of blast furnace capacity after India.</p>
<p>Mumbai: Continued investments in new coal-based steelmaking capacity and planned relining of blast furnaces to extend their lifespan threaten the industry’s clean energy transition, according to Global Energy Monitor’s (GEM) sixth annual report on the sector.</p><p>The report states that 319 million tonnes per annum (mtpa) of coal-based blast furnace capacity worldwide has either been announced or is under construction — a five per cent increase over the previous year.</p><p>Along with an additional 80 mtpa of capacity slated for relining, new blast furnace investments significantly outpace the 141 mtpa of currently operating blast furnace capacity that has announced retirement plans. As a result, global blast furnace capacity is projected to register a net increase of 88 mtpa by 2035.</p>.Steel giants still far from green.<p>With nearly 88 per cent of steel sector emissions generated from coal-based production and the industry accounting for 11 per cent of global CO2 emissions, the report stresses that investments in greener technologies are critical for the industrial transition towards net-zero emissions.</p><p>However, progress remains slow. The share of lower-emission electric arc furnace (EAF) steelmaking technology increased only marginally over the past year, rising from 33 per cent to 34 per cent of global operating capacity.</p><p>In ironmaking, only 10 per cent of capacity currently uses direct reduced iron (DRI) technology instead of emissions-intensive coal-based blast furnaces. Of this, just 2 per cent — or 4 mtpa — relies on green hydrogen as the primary reductant instead of fossil fuels, making net-zero compatible production extremely limited.</p><p>Astrid Grigsby-Schulte, Project Manager of the Global Iron and Steel Tracker at Global Energy Monitor, said, “The outlook remains bleak for steel’s transition away from fossil fuels. The ball is in India and China’s court, as the two countries account for 86 per cent of planned new coal-based capacity. Pivoting to lower-emission technologies and making better use of existing EAF capacity are immediate steps that could significantly alter the direction of the global steel industry.”</p><p>India alone is developing more than 60 per cent of the world’s new coal-based blast furnace capacity, while 93 per cent of its ironmaking capacity under development is based on coal-intensive technology. However, only 5% of the proposed projects have actually broken ground, leaving scope for policy intervention.</p><p>In China, nearly 94 per cent of existing blast furnace capacity has no retirement plans, and the country remains the second-largest net developer of blast furnace capacity after India.</p>