Report | 2022
Closing the Loop
Value Chain Cultivation for Clean Hydrogen-Based Steel
Hydrogen-based steel production, especially with clean hydrogen, is one of the most critical and promising solutions to fully decarbonize the steel industry. Both China and Europe are actively exploring clean hydrogen-based steelmaking. In Europe, steelmakers are moving fast to make clean hydrogen the basis for investing in and constructing zero-carbon steel production processes. Chinese steel companies are also actively developing the capabilities of hydrogen-based steelmaking.
However, given the high green premium of the clean hydrogen-based route today, joint efforts from all stakeholders within the ecosystem are required to kickstart the market until economies of scale are achieved to further drive down the cost. In this regard, stakeholders representing the upstream supply, downstream demand, financing, technology, and others need to be involved, in addition to the steel companies themselves.
RMI’s latest insight brief Closing the Loop: Value Chain Cultivation for Clean Hydrogen-Based Steel demonstrates the importance of cultivating the value chain for clean hydrogen-based steel, maps the motivations and opportunities of each side, and discusses how the practical challenges can be properly addressed.