Skip to main content

Lund University Publications

LUND UNIVERSITY LIBRARIES

Steel Decarbonization—from Optimization to Transformation

Algers, Jonas LU orcid ; Ahman, Max LU orcid and Nilsson, Lars J. LU orcid (2025) In Annual Review of Environment and Resources 50(1). p.433-454
Abstract

The Paris Agreement necessitates global net-zero emissions by mid-century, including steel industry emissions that currently amount to about 7% of global energy system emissions. In this article we review the literature on steel decarbonization. Steel industry emission mitigation measures include reduced demand through materials efficiency, increased high-quality recycling, and decarbonization of iron ore–based primary production. Low and decreasing costs for renewable electricity make green hydrogen direct reduction an increasingly promising and preferred alternative for primary production of iron, and there is growing policy support for demonstration and deployment of low-carbon steelmaking, particularly involving hydrogen.... (More)

The Paris Agreement necessitates global net-zero emissions by mid-century, including steel industry emissions that currently amount to about 7% of global energy system emissions. In this article we review the literature on steel decarbonization. Steel industry emission mitigation measures include reduced demand through materials efficiency, increased high-quality recycling, and decarbonization of iron ore–based primary production. Low and decreasing costs for renewable electricity make green hydrogen direct reduction an increasingly promising and preferred alternative for primary production of iron, and there is growing policy support for demonstration and deployment of low-carbon steelmaking, particularly involving hydrogen. Decarbonizing the global steel industry involves a system transformation that must evolve in tandem with reduced overcapacity, a phase-out of conventional steelmaking, and meeting increased demand in developing countries. A switch to renewable energy as a key input in steelmaking may give rise to new competitive advantages and industrial relocation, potentially exacerbating geopolitical tensions in the transition. While steel decarbonization research previously focused on how to optimize the fossil-based steel system, recent studies are oriented toward transformation and development of alternatives.

(Less)
Please use this url to cite or link to this publication:
author
; and
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
decarbonization, hard-to-abate, industry, policy, steel, transitions
in
Annual Review of Environment and Resources
volume
50
issue
1
pages
22 pages
publisher
Annual Reviews
external identifiers
  • scopus:105018303112
ISSN
1543-5938
DOI
10.1146/annurev-environ-111523-101851
language
English
LU publication?
yes
id
1256cc40-6559-4577-a41b-ed76bc543950
date added to LUP
2026-01-12 15:57:37
date last changed
2026-01-13 03:38:30
@article{1256cc40-6559-4577-a41b-ed76bc543950,
  abstract     = {{<p>The Paris Agreement necessitates global net-zero emissions by mid-century, including steel industry emissions that currently amount to about 7% of global energy system emissions. In this article we review the literature on steel decarbonization. Steel industry emission mitigation measures include reduced demand through materials efficiency, increased high-quality recycling, and decarbonization of iron ore–based primary production. Low and decreasing costs for renewable electricity make green hydrogen direct reduction an increasingly promising and preferred alternative for primary production of iron, and there is growing policy support for demonstration and deployment of low-carbon steelmaking, particularly involving hydrogen. Decarbonizing the global steel industry involves a system transformation that must evolve in tandem with reduced overcapacity, a phase-out of conventional steelmaking, and meeting increased demand in developing countries. A switch to renewable energy as a key input in steelmaking may give rise to new competitive advantages and industrial relocation, potentially exacerbating geopolitical tensions in the transition. While steel decarbonization research previously focused on how to optimize the fossil-based steel system, recent studies are oriented toward transformation and development of alternatives.</p>}},
  author       = {{Algers, Jonas and Ahman, Max and Nilsson, Lars J.}},
  issn         = {{1543-5938}},
  keywords     = {{decarbonization; hard-to-abate; industry; policy; steel; transitions}},
  language     = {{eng}},
  number       = {{1}},
  pages        = {{433--454}},
  publisher    = {{Annual Reviews}},
  series       = {{Annual Review of Environment and Resources}},
  title        = {{Steel Decarbonization—from Optimization to Transformation}},
  url          = {{http://dx.doi.org/10.1146/annurev-environ-111523-101851}},
  doi          = {{10.1146/annurev-environ-111523-101851}},
  volume       = {{50}},
  year         = {{2025}},
}