Wind and solar energy is essential on every step of the steel decarbonization pathway. Wind and solar is needed to power Electric Arc Furnaces (EAF), and to make the green hydrogen that must replace coal and gas as a feedstock for reducing the iron which steel is made from.
Despite how critical renewable energy is to decarbonizing the steel industry, steel companies’ renewable energy use has received limited attention. That is why Action Speaks Louder, with the support of SteelWatch, has produced the first ever ranking of major steel companies’ direct renewable energy use.
Unfortunately, our ranking found the steel industry performs poorly on renewable energy procurement, with a floor of zero renewable energy to a high of 19 percent of energy consumed. South Korea’s Hyundai Steel and Dongkuk Steel rank last amongst steel majors, declaring zero renewable use, with no evidence of operational renewable projects or current Power Purchase Agreements. The Nordic company SSAB led the field at 19 percent renewable energy in 2022.
Steel companies are large energy users with significant political influence, which are heavily reliant on renewable energy to meet their net-zero targets. Our report outlines the immediate steps companies can take to establish credible green steel claims: from adopting renewable energy targets based on their total energy use which, at a minimum, deliver on the International Energy Agency’s Net-Zero pathways, to committing to significant investment in wind and solar, either in their production locations or through a commitment to purchase green hydrogen-made iron.
