top of page

Virtual Lecture: Green Steel and Sustainability

Green Steel: Paving the Way to a Sustainable Future

12/12/2025


Ricardo Luiz Perez Teixeira

Instituto de Engenharias Integradas da Universidade Federal de Itajubá, Itabira, MG, Brazil


Abstract: During recent lectures at the COEN 2025 event at UFSJ and the IECT 2025 event at UFVMJ, Professor Ricardo Luiz Perez Teixeira emphasised the growing importance of green steel for global sustainability. He explained that the steel industry is evolving to address climate challenges. Green steel refers to a cleaner, more responsible production method that supports the United Nations Sustainable Development Goals.


Keywords: green steel, hydrogen technology, iron and steel industry, steelmaking, sustainability


Introduction: During the lecture, Professor Ricardo Luiz Perez Teixeira emphasised that the global steel industry, which accounts for approximately 7-9% of anthropogenic CO₂ emissions, is at the centre of the decarbonisation agenda. This observation aligns with recent scientific assessments indicating that the conventional blast furnace-basic oxygen furnace (BF-BOF) route emits about 2.3 ± 0.2 tCO₂ per ton of crude steel and consumes 20-22 GJ/t, marking it as one of the most carbon- and energy-intensive industrial processes. In this context, green steel represents not merely a technological innovation but a structural shift aligned with the United Nations Sustainable Development Goals and the broader triple-bottom-line framework encompassing economic, environmental, and social dimensions.

From a technological standpoint, the transition toward low-carbon steelmaking involves three principal pathways: hydrogen-based direct reduction (H₂-DRI), electric arc furnaces powered by renewable electricity (EAF-RE), and carbon capture and storage (CCS) integrated into conventional BF-BOF systems. Hydrogen-based direct reduction has demonstrated the highest decarbonization potential, with emissions falling to 0.4-0.8 tCO₂/t, equivalent to 65-83% reductions relative to BF-BOF, and energy consumption of 12-15 GJ/t. This route requires 50–55 kg of hydrogen per ton of steel and has been successfully implemented in large-scale demonstration projects such as HYBRIT in Sweden and recent initiatives in Japan, where emission reductions approach 90%. The second pathway involves expanding the use of electric arc furnaces, which, when powered by renewable energy and supplied with high-quality scrap, can reduce emissions by 50-70%. The global relevance of EAFs continues to increase as circular economy strategies promote steel recycling, material recovery, and waste minimisation. The third pathway, CCS, offers a transitional solution for existing BF-BOF plants by capturing up to 60% of CO₂ emissions, though it requires an additional 2-3 GJ/t for capture, compression, and storage. Together, these technological routes demonstrate that no single method is universally optimal; instead, countries must adopt hybrid strategies adapted to their energy matrices, resource availability, and industrial maturity.

A central theme in Teixeira’s lectures was the transformative role of green hydrogen as an industrial decarbonization vector. Current green hydrogen costs range from US$4 to US$6 per kilogram, adding roughly US$200-220 to the cost of producing one ton of steel in an H₂-DRI system. However, projections indicate that green hydrogen prices may fall to US$2-2.5/kg by 2030 and US$1-1.5/kg by 2040. At these levels, the additional production cost decreases to US$50-55/t, making green steel economically competitive with conventional production. This cost trajectory is crucial, as large-scale steelmaking requires stable and affordable hydrogen supply chains. Teixeira contextualised this evolution by examining leading international efforts-such as HYBRIT in Sweden, H2 Green Steel, and Japan’s hydrogen-integrated metallurgy programs-alongside emerging opportunities in Brazil, Australia, India, and the United States. These nations are investing in renewable generation, electrolyser deployment, infrastructure, and policy frameworks that will determine the pace and scale of industrial decarbonization.

Brazil holds a distinctive position in this global landscape due to its highly renewable electricity matrix, with approximately 85% of national power derived from hydroelectric, wind, and solar sources. This advantage drastically reduces the carbon intensity of electro-intensive processes such as electrolysis and EAF-based steelmaking. Moreover, Brazil is the world leader in biomass-based steel production: nearly 30% of its steel derives from charcoal produced in certified eucalyptus plantations, which reduces emissions to around 1.8 tCO₂/t-well below global BF-BOF averages. This combination of abundant renewable resources, growing hydrogen production capacity, and widespread forest-based metallurgy positions Brazil as a competitive candidate for large-scale green steel production and export. Teixeira also highlighted ongoing industrial and academic initiatives-such as AVB, Aperam, and UNIFEI’s Green Hydrogen Centre-that contribute to national expertise in hydrogen technologies, sustainable metallurgy, and energy systems modelling.

These technological and regional developments must be interpreted within the broader international climate agenda. Teixeira linked ongoing research and industrial transitions to the outcomes of COP 23 and the expectations for COP 30 in Belém, where discussions on carbon pricing, green financing, border adjustment mechanisms, and technology transfer are poised to influence global steel markets. Quantitative evidence from recent studies supports this outlook: the European Union’s carbon price ranges from €70 to €85/tCO₂, and mechanisms such as the Carbon Border Adjustment Mechanism (CBAM) may impose €50-75/t on high-carbon imported steel. These policy instruments accelerate the adoption of clean technologies, stimulate market demand for low-carbon materials, and create competitive pressures for countries to modernise their steel industries.

Teixeira concluded by presenting comparative data on energy use, capital investment, and emission profiles across steelmaking routes. The BF-BOF process averages 20-22 GJ/t and 2.0-2.6 tCO₂/t, whereas H₂-DRI-EAF requires 12-15 GJ/t and can reach emissions as low as 0.4 tCO₂/t. CCS-retrofitted BOF systems reach about 0.9 tCO₂/t, and renewable-powered EAFs operate near 2.2-3.5 GJ/t. Capital expenditures also vary: BF-BOF plants require US$1,200-1,500 per annual ton of capacity, H₂-DRI–EAF plants US$1,800–2,200, and EAF modernisation US$300-500. These metrics illustrate the technical feasibility and economic challenges of deploying green steel technologies at scale. They also underscore the need for coordinated public policies, such as carbon pricing, subsidies, hydrogen infrastructure, and circular economy incentives, to ensure that environmental gains translate into industrial competitiveness and long-term sustainability.

Overall, the integration of technological innovation, renewable energy expansion, circularity, and climate-aligned policy mechanisms reveals that green steel is not simply an emergent industrial product but rather a systemic transformation of modern metallurgy. It represents a concrete, scientifically grounded pathway to reducing global emissions, positioning industries for a low-carbon economy, and enabling countries like Brazil to assume leadership roles in shaping a sustainable industrial future.


Events:

  • Presented an engaging virtual lecture, “Green Steel and Sustainability,” during the 5th Week of Engineering and Knowledge at the Federal University of the Jequitinhonha and Mucuri Valleys (UFVMJ, Janaúbá-MG), captivating participants for a full hour between November 10 and 14, 2025.

  • Shared insights on “Green Steel and Sustainability” in a dynamic virtual lecture at the 13th Engineering Congress of the Federal University of São João del-Rei (XII COEN UFSJ), engaging attendees for an hour on November 25, 2025, at the Santo Antônio Campus.


Relevant publications associated with the lecture presented at the engineering event:

 
 
 

Comments

Visitor counter

bottom of page