Techno-economic Feasibility and Benefits of Hydrogen-based Steel Production

The steel industry is essential to global development but is also a major contributor to greenhouse gas emissions, accounting for about 7% of global emissions. To mitigate this impact, the industry must transition to more sustainable production methods. This study examines traditional steel production processes, such as Blast Furnace-Basic Oxygen Furnace (BF/BOF) and Electric Arc Furnace (EAF), alongside emerging technologies like Hydrogen Direct Reduction (H-DR). It analyses the challenges of retrofitting existing steel plants for hydrogen use compared to the construction of new facilities. Additionally, the different types and colours of hydrogen, their respective production methods, costs, and their role in making hydrogen-based steelmaking economically viable, are explored. The study highlights the central role of renewable energy in reducing the cost of green hydrogen and the potential for significant emissions reductions in steel production. By comparing carbon emissions, energy consumption, and production costs, the research outlines how hydrogen-based steelmaking can transform the industry. Furthermore, the impact of policy mechanisms such as carbon pricing and government incentives in accelerating this transition is discussed. The findings suggest that with strategic investments in technology, structure, and renewable energy, the steel industry can achieve significant reductions in its carbon footprint while maintaining competitiveness, providing a clear pathway to a cleaner and more sustainable steel production.