Demand for green steel is on the rise, with expectations for an increase in demand to around 49 million tonnes by 2030, according to industry experts. With new capacities coming online in Europe, the supply of green steel is expected to grow, but delays in capacity expansion could tighten the market. Customers are willing to pay premiums for steel with lower carbon emissions, with prices reported at €200-350 per tonne.
Major steel producers are introducing their own green steel brands, but there is currently no common standard for green steel in the industry. Transparency in emissions tracking is becoming a decisive factor in sourcing green steel, with a push for a coordinated approach to create a simple, applicable standard for the sector.
European customers, such as BMW and Volvo, have set ambitious sustainability goals, driving the demand for green steel. The shift towards using more scrap and reducing carbon emissions in steel production poses challenges for the industry. The availability of high-quality iron ore and scrap to feed new capacities is a concern, with potential impacts on the EU’s scrap export market.
Despite the challenges, steel remains an essential part of the solution in the decarbonization journey, with a relatively lower carbon footprint compared to other industries. The use of green steel in various industries only marginally increases the cost of end-products, emphasizing the significant role steel plays in decarbonizing value chains.
Overall, the growing demand for green steel reflects a shift towards sustainable practices in the steel industry, with a focus on transparency, emissions reduction, and innovation to meet customer demands and environmental goals.
