Steel is crucial for modern infrastructure, transportation, and energy sectors, playing an important role in global economic growth. However, the steel industry is a major source of carbon emissions, especially from fossil-based methods such as Blast Furnace + Basic Oxygen Furnace (BF-BOF) and Natural Gas–based Direct Reduction of Iron coupled with Electric Arc Furnace (NG-DRI-EAF). As global steel demand rises, there is a necessity to explore more sustainable methods to reduce this sector’s environmental impacts. This study evaluates the environmental impacts of the H2STEEL process, an innovative approach for producing green hydrogen and bio-based solid carbon from circular biowaste streams, aligned with the EU’s decarbonization targets.