Turning to direct reduced iron (DRI) plants to produce green hydrogen could hinder efforts to decarbonise the steel industry, according to a new report.
The shift towards DRI in electric arc furnaces (EAF) is likely to result in less zinc recovery, warns Wood Mackenzie Zinc Markets Service. It says this is due to the notably lower zinc content in EAF dust.
Existing EAF facilities generate approximately 535 million tonnes of steel per annum. The annual output of steel dust containing zinc ranges from 0.2 to 3.4 million tonnes.
Primary smelters currently use up to 25% of zinc oxides and other residues in their raw material feed. Meanwhile, around 1.6 million tonnes of zinc are sourced globally every year from the zinc in steel dusts and other residues. The average zinc content of EAF dust is 17%.
EAF capacity grows
‘By 2050, nearly half of the world’s steel production is projected to come from EAF processes,’ observes analyst Andrew Thomas. ‘This transition is necessary for decarbonisation efforts but also poses challenges for the zinc industry in meeting the demands of decarbonisation and the circular economy.’
Thomas argues that the process labelled by many as the ‘best available technology’ for zinc recycling is actually highly carbon-intensive. In fact, he says, the rise of EAF is difficult to align with the decarbonisation goals of the steel industry.
‘Alternative methods of recovering zinc from steel dusts have proven unsuccessful,’ Thomas notes. He laments that a higher amount of zinc could be lost if steel dust is used in the production of, for example, ferro concrete, thus preventing the recovery of zinc altogether.
It’s clear that the zinc industry is facing a ‘significant challenge’ in balancing industry demand and circular economy expectations.
The detailed report titled ‘A Challenging Future for Secondary Zinc’ is available here.
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