Sector Importance for Sustainable Finance:
The steel industry generates approximately 3% of global GHG emissions. Like cement our whole built environment has a massive reliance on steel.
Steel is recyclable and we need it to move to a low carbon economy, we just need it produced in a way that generates much lower GHG emissions.
Steel is very unique and that is it is extremely strong and has limited substitutes.
- Steel has limited substitutes so how can we decarbonize it
- In traditional blast oxygen furnace steelmaking production routes coal is used as the source of heat and the major reductant that strengthens and purify’ s the iron, how do we remove coal from this process?
- How scalable are some of the new solutions attached to electric arc furnace such as natural gas, hydrogen generating direct reduced iron or DRI?
- Carbon capture has been touted as a key solution for this sector but has proved very difficult to implement given the multiple points of emissions along the iron steel production cycle?
SSAB: Sustainability Lined Loan