EuroWire January 2025

Technical Article

However, scrap also offers another major opportunity to reduce the CO 2 footprint in the production of high-alloy and stainless steels. We are increasingly moving away from pure primary alloys such as ferronickel, ferromanganese or ferromolybdenum in favour of high-alloy scrap from the outset. In the case of high performance steels in particular, the proportion of alloying additions sometimes exceeds 30 per cent. These, in turn, are particularly energy- and CO 2 -intensive in their procurement. It will therefore become increasingly important to alloy with quality scrap instead of pure metals in the future. The use of primary alloys cannot be completely avoided, especially for some special grades with specific requirements. However, in order to further reduce Scope 3 emissions, both metallurgical and recycling technology innovations are required. The metallurgical laboratory of the Swiss Steel Group at Ugitech in Ugine, France, has been making a name for itself in this field for years. One of the innovations developed there is the Ugi’Ring project, which is being worked on together with regional partners. The ten-year, government-funded project will help to reduce the need for primary alloys, thereby increasing the company’s competitiveness and further reducing the CO 2 footprint of the material used. The aim is to create the world’s first “circular” steelworks, in which the company’s own secondary alloys are produced from waste products such as batteries, catalytic converters and similar materials. This will also make the company independent of primary alloy supplies from politically unstable producer countries. The energy mix makes the difference As a rule, the steelworks on the electric arc furnace route use the energy mix that is available to them in their respective area at reasonable prices. However, it is also possible to specifically purchase only electricity from renewable energy sources, which in turn has a drastic effect on the CO 2 footprint of the material that is produced in these steelworks. For example, the Swiss Steel Group’s Green Steel Climate+ quality has a CO 2 footprint that is up to 83 per cent lower than the global average for steel production. Swiss Steel Group’s decision to go down the electric arc furnace route reflects the change in the steel industry as a whole.

More and more companies are recognising the need to rethink their production processes and pursue more environmentally friendly alternatives. “This paradigm shift is not only a response to regulatory requirements, but also an act of corporate responsibility towards society and future generations,” says Frank Koch, CEO of the Swiss Steel Group. In order to underpin the strategic decision to decarbonise, the company has therefore also joined the Science Based Targets Initiative (SBTi), with the aim of validating the roadmap for further decarbonisation this year. The SBTi has developed a Net-Zero Standard for companies. This provides a clear and science-based definition of net zero and is a world-first framework in the private sector for setting long-term, ambitious and science-based net-zero targets – to be achieved by 2050. Further information can be found at: www.myclimate.org/en/information/faq/faq-detail/what-are science-based-targets-sbt The Swiss Steel Group is one of the few steel manufacturers in the world to have joined the Carbon Disclosure Project. The project is a non-profit organisation founded in London in 2000. Its aim is for companies to provide each other with transparency about their emissions in order to be able to determine the most accurate values possible across the entire value chain. The electric arc furnace route has already come a long way. In fact, it is currently the only method to reliably produce green steel for every application and buy green steel every day, but there is still a lot to do to achieve the other goals. In particular, the availability of affordable and sustainable electricity and the development of more efficient electric arc furnace technologies are crucial factors for its long-term success. Ensuring competitiveness is the order of the day. Short-term changes in grid charges can have a major impact. Consortia PPAs, for example, could provide a solution here. In any case, cooperation between governments, industry and research institutions is essential in order to overcome these and other obstacles and drive forward the decarbonisation of the steel industry. Overall, the electric arc furnace route represents a promising way to decarbonise steel production. At the moment, it is leading the way. By using innovative technologies and sustainable practices, steel manufacturers like the Swiss Steel Group will take a leading role in the fight against climate change. It is now up to the entire industry to follow this path consistently and shape a sustainable future for the steel industry.

Swiss Steel Group https://swisssteel-group.com

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January 2025