Source: European Investment Bank
Finding more sustainable production processes can raise steel prices a lot. This is because companies must spend millions of euros on research, new equipment and training. One estimate suggests that it is 25% more expensive to make low-carbon steel. A lot of steel research today focuses on making a product that emits less carbon and does not increase costs substantially.
Most of the so-called green steel is not able to compete with cheaper steel made from traditional blast furnaces, but it is still in demand. Industries such as the automotive sector will pay a premium for a sustainable, high-quality product. And new regulations in the European Union and other regions are making it mandatory that companies use more low-carbon steel or pay tariffs.
Tonteling, the senior engineer at the European Investment Bank, says the one thing we can’t do with steel in the future is stop making it.
“Just think about how you got out of bed this morning,” he says. “There is steel in the bed. And think how many times you use steel to leave the home, get to work, ride a bike, drive or take public transport. Steel is everywhere and it can’t be replaced. There is no other method or material that has the same properties and that is this abundant and relatively cheap.”