It’s time to get serious about the environmental impact of producing steel and aluminium

The metals industry is facing a trilemma

Manufacturing these two key industrial metals accounts for over 10% of all the world’s direct emissions from use of fossil fuels. By 2050, the global demand for steel and aluminium – foundation materials and the building blocks of modern life – is expected to be double the level of 2012.

Clearly this is a conflict and fundamental change is needed.

With this in mind, we have announced our ambition to become carbon neutral by 2030 – or as we call it, CN30.

This does not mean that we will have no emissions, or indeed that we will abandon traditional practices overnight.

This will require strategic long-term thinking and it presents an opportunity for a change in mindset.

So how do we plan to transition to GREENSTEEL?

We see two major pathways depending on the local market dynamics.

1 - Combine steel scrap recycling with renewable power, most suited to mature economies with abundant scrap arisings such as we are pursuing in the UK and the Czech Republic

 2 - Introduce breakthrough technology to address emissions from primary steelmaking – this includes hydrogen steel making and DRI - such as we are pursuing in Australia and Romania

Here are the five key enabling factors that are vital to the transition to GREENSTEEL

This needs to balance incentives with regulation. Implement policy that is too strict too quickly, adding costs or reducing competitiveness, you compromise industry’s ability to invest in the transition, but if you do nothing the industry won’t move quickly enough. Policy incentives are therefore required to support industry and ensure that companies which implement low carbon technologies are rewarded.

GFG Alliance’s GREENSTEEL journey starts with magnetite

We are putting in place the building blocks for our transition to GREENSTEEL with our magnetite expansion project in Australia, which is important because high-quality processed magnetite ore is essential to the DRI process for making GREENSTEEL.

In April we announced the first phase of our magnetite expansion project which will increase production to 2.5mtpa. The second phase is set to lift production to 5mtpa to ensure there is enough high-quality iron ore for DRI production at our plant in Whyalla. We have big plans which are taking shape today

Read about our investment plans to decarbonise our primary steelmaking

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