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Decarbonizing the Asian steel industries through green Hot Briquetted Iron trade

Li, Zhenxi LU ; Åhman, Max LU orcid ; Algers, Jonas LU orcid and Nilsson, Lars J LU orcid (2025) In Resources, Conservation & Recycling 219.
Abstract
The Asian steel industry produces 73 % of global steel and is expanding. The speed and plans for decarbonizing the Asian steel sector are thus globally important. Importing green Hot Briquetted Iron (HBI), iron ore reduced to iron with renewable hydrogen, from renewable-rich countries such as Australia, Brazil and South Africa, could be a good option to avoid constraints with access to renewables. However, the effects of green-HBI-trade on Asian steel decarbonization strategies have not yet been studied. We use an optimization model, spanning from 2023–2070, to evaluate whether green-HBI-trade can help Asia to achieve Nationally Determined Contributions and Paris Agreement. We found that HBI-trade could accelerate the phase-out of BF-BOF... (More)
The Asian steel industry produces 73 % of global steel and is expanding. The speed and plans for decarbonizing the Asian steel sector are thus globally important. Importing green Hot Briquetted Iron (HBI), iron ore reduced to iron with renewable hydrogen, from renewable-rich countries such as Australia, Brazil and South Africa, could be a good option to avoid constraints with access to renewables. However, the effects of green-HBI-trade on Asian steel decarbonization strategies have not yet been studied. We use an optimization model, spanning from 2023–2070, to evaluate whether green-HBI-trade can help Asia to achieve Nationally Determined Contributions and Paris Agreement. We found that HBI-trade could accelerate the phase-out of BF-BOF steel by 2 to 5 years and reduce BF-BOF steel production by 2 Gt, thus lowering the cumulative CO2-emissions from the steel sector by 4 Gt. Consequently, current plans to expand BF-BOF capacity may lead to stranded assets when steel is decarbonizing. (Less)
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author
; ; and
organization
publishing date
type
Contribution to journal
publication status
published
subject
in
Resources, Conservation & Recycling
volume
219
pages
11 pages
publisher
Elsevier
external identifiers
  • scopus:105001167958
ISSN
0921-3449
DOI
10.1016/j.resconrec.2025.108275
language
English
LU publication?
yes
id
ae7113e6-8417-499b-98f7-ba94ea4278b2
date added to LUP
2025-04-22 14:45:35
date last changed
2025-04-23 14:03:20
@article{ae7113e6-8417-499b-98f7-ba94ea4278b2,
  abstract     = {{The Asian steel industry produces 73 % of global steel and is expanding. The speed and plans for decarbonizing the Asian steel sector are thus globally important. Importing green Hot Briquetted Iron (HBI), iron ore reduced to iron with renewable hydrogen, from renewable-rich countries such as Australia, Brazil and South Africa, could be a good option to avoid constraints with access to renewables. However, the effects of green-HBI-trade on Asian steel decarbonization strategies have not yet been studied. We use an optimization model, spanning from 2023–2070, to evaluate whether green-HBI-trade can help Asia to achieve Nationally Determined Contributions and Paris Agreement. We found that HBI-trade could accelerate the phase-out of BF-BOF steel by 2 to 5 years and reduce BF-BOF steel production by 2 Gt, thus lowering the cumulative CO2-emissions from the steel sector by 4 Gt. Consequently, current plans to expand BF-BOF capacity may lead to stranded assets when steel is decarbonizing.}},
  author       = {{Li, Zhenxi and Åhman, Max and Algers, Jonas and Nilsson, Lars J}},
  issn         = {{0921-3449}},
  language     = {{eng}},
  month        = {{06}},
  publisher    = {{Elsevier}},
  series       = {{Resources, Conservation & Recycling}},
  title        = {{Decarbonizing the Asian steel industries through green Hot Briquetted Iron trade}},
  url          = {{http://dx.doi.org/10.1016/j.resconrec.2025.108275}},
  doi          = {{10.1016/j.resconrec.2025.108275}},
  volume       = {{219}},
  year         = {{2025}},
}