Steel industry takes the lead in the green transition

A new report from consultancy Sweco outlines the progress of European industry in reducing emissions in the processing chain. The steel industry is at the forefront, with Sweden as a leading example. Swedish companies such as LKAB/HYBRIT are highlighted as pioneers.

The steel industry has made the most progress, especially in Sweden, followed by the cement industry. The chemical and transport industries are also moving towards net zero emissions, according to the Sweco report.

The report highlights how factors such as geopolitics, regulations and technological developments are driving the transition. It also highlights opportunities and risks that should be considered when new technologies such as hydrogen, carbon capture and storage (CCS) and electrofuels are tested on an industrial scale.

The industrial sector accounts for 25-30% of total global carbon emissions. Demand for industrial products is expected to grow significantly over the next 30 years: steel by 30%, cement and ammonia by 40%, and aluminium by 80%.

Swedish companies, such as LKAB/HYBRIT, are highlighted as pioneers in the use of hydrogen to reduce CO2 emissions. Europe's largest electrofuel plant is located in Örnsköldsvik, which is one of the world's first e-methanol production facilities.

"There are several reasons why this is happening right now, such as higher carbon prices, new investments, regulations, the EU Net Zero Industry Regulation and a higher demand for sustainable products from end customers. Given the geopolitical situation, it is important that Europe and Sweden have domestic value added," says Fredrik Axby, Acting Head of Energy & Industry at Sweco Sweden.

Sweco's analysis shows that Europe is taking the global lead in the green transition of the industrial sector.

In Sweden, several full-scale green steel production projects are underway, as well as a green cement project, where cement manufacturers are already producing with 40 per cent lower climate impact than average. These projects demonstrate Sweden's role in the green industrial transition that is currently taking place. In Europe, 95 per cent of all full-scale cement projects and 61 per cent of all fossil-free steel projects in the world are implemented.

Lennart Håkansson

editor@northswedenbusiness.com