Hydrogen is Here – to Decarbonize the Steel Industry

Conditions are becoming increasingly favorable for steel decarbonization across Europe, with French, German, and Swedish steelmakers recently announcing their plans to move to renewable energy-based steelmaking. 

A recent European Union policy outlined an increase on carbon costs, pushing EU steelmakers to turn to hydrogen-based steel projects. Currently only operational at a pilot-scale, several hydrogen-based steel projects will be ready at an industrial-scale by 2026.

The EU also plans to have 6 gigawatts (GW) of renewable hydrogen electrolyzer capacity by 2024 – and 40GW by 2030. What’s more, ArcelorMittal, a leading steel company, recently committed $100 million to the sustainable energy-focused investment fund Breakthrough Energy, among its other investments in the renewable energy sector. The trend is toward hydrogen, and further decarbonization commitments are expected in the near future.