Steel

1. 34% growth in steel production in the last 10 years

2. 50% of production in OECD, 2003

3. Moderate trade – 30% of production traded

4. Highly fragmented – Top ten companies account for 28% of production

5. International Iron and Steel Institute

Steel emissions1. 5.2% (estimated) of total anthropogenic GHG emissions

2. Two production routes– integrated & electric arc furnace

3. Emissions sources– Integrated – fossil fuels: 2.7

tCO2/tSteel– Integrated – electricity: 0-0.2

tCO2/tSteel

– Electric furnace – fossil fuels: 0.2 tCO2/tSteel Electric furnace – electricity: 0-0.7 tCO2/tSteel

Integrated and electric furnace steel, production and emissions intensity

0

100

200

300

400

500

600

700

800

Integrated production Electric furnace production

Production (Mt)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Emissions Intensity (t CO2/t Steel)

production emissions intensity

1787 Mt CO2 eq.

184 Mt CO2 eq.

Steel CO2 intensities by region, 1995

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

NAFTA

Africa

/Mid

dle E

ast

West

Euro

pe

Rest o

f Asi

a

Latin A

meric

a

Japan

East E

urope a

nd FSU

Austra

lia/N

Z

China

t CO2/ t steelIntegrated Electric Total

Scope for progress in steel

1. Minor improvements through process integration & heat recovery (~2% reduction)

– continuous casting– furnace gas recovery and use– coke dry quenching

2. Short to mid term opportunities– Corex, CCF, Circored, Circofer, HISmelt … (up to

45% reduction in integrated steel emissions)3. Long term future

– carbon capture and storage (up to 90% reduction)– alternative reductants such as H2 (50–100%

reduction)