3Q 2022

Analyst Insight: Potential Green Hydrogen in Steel Manufacturing

Hydrogen Electrolyzer Tracker Insights

Green hydrogen produced from renewable electricity is critical to the replacement of fossil fuels in hard-to-decarbonize industries such as steelmaking. Ambitious deployment targets over the next ten years mean that green hydrogen projects are attracting significant investment, especially in Europe. However, greater efforts to promote green hydrogen use in the steel industry are necessary, particularly in regions where industrial decarbonization initiatives are currently under-developed.

The decarbonization of steelmaking will be imperative for meeting global climate targets, as the sector accounts for approximately 7% of global CO2 emissions. Currently, 70% of steel is produced via the carbon intensive blast furnace-basic oxygen furnace (BF-BOF) route, which uses metallurgical coal and coke for heating applications and reducing iron ore. Approximately 23% of steel is produced from scrap in electric arc furnaces (EAFs). The remaining 7% is largely obtained from natural gas-based direct reduced iron (DRI) production in combination with EAF. The primary methods for decarbonizing steelmaking are equipping BF-BOF plants with carbon capture and storage or using green hydrogen and electricity from renewable energy sources for DRI-EAF. 

This third iteration of Guidehouse Insights’ Hydrogen Electrolyzer Tracker’s Analyst Insight summarizes the key findings of the tracker, outlines important market trends, provides a rundown of carbon reduction pathways, examines the top five steel producing nations, and delivers recommendations for industry stakeholders to increase green hydrogen adoption in steelmaking. 

Pages 14
Tables | Charts | Figures 5
  • How is hydrogen useful for making green steel?
  • What are the main trends in green steel?
  • What are the green steel market drivers and barriers?
  • What role do industrial use cases play in the hydrogen economy?
  • What does Guidehouse Insights recommend for stimulating the green steel economy?
  • Hydrogen producers
  • Steel producers
  • Investors
  • Electrolyzer producers
  • Industry players
  • Policy makers



Executive Summary

Market Inflection Trends

Market Drivers and Barriers

Market Forecast

Green Steel Pathways

Top 5 Steel Producing Nations Go Green

Decarbonization by Heat Process & Key Recommendations

Acronyms & Abbreviations, Additional Resources, Contact

  • Industrial Low Carbon Hydrogen Consumption by Region, World Markets, 2022-2031
  • Planned Electrolyzer Deployments by End User Segment, World Markets, 1Q 2022
  • LeadIt Steel Decarbonization Projects by Quarter Announced, Worldwide, 2019-2022
  • Low Carbon Hydrogen Consumption in Steelmaking, World Markets, 2022-2031
  • Market Drivers and Barriers