The North American Procurement Process
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Sustainable Steel Buyers Platform
The Challenge of Near-Zero-Emissions Steel
Shifting global steel production to cleaner power sources requires major investments and transformational technological shifts this decade. Industry-backed roadmaps estimate we need at least 70 low-emissions steel plants built in the short term to reach net zero by 2050. Most existing plants will only have one retrofitting opportunity between now and midcentury, so these investments must happen now.
While existing government incentives help bring cleaner production pathways in line with conventional fossil-based pathways, commercial-scale near-zero-emissions iron and steel projects still face large capital investment requirements. Based on financing strategies utilized by recent near-zero-emissions steel developments, we know that obtaining large buyer purchasing agreements and early green premiums are critical in helping suppliers reach Final Investment Decision.
The good news? Demand for near-zero-emissions steel is there. Steel-consuming companies have made ambitious commitments to procure cleanly-produced steel through initiatives like the First Mover’s Coalition and SteelZero, as well as ambitious near-term supply chain (Scope 3) emissions targets. To meet these commitments, RMI estimates annual demand for near-zero emissions steel will reach up to 6.7 million tons by 2030 in the United States, and an additional 6 million tons in the Asia-Pacific (excluding India and China). This is enough offtake coverage for six commercial-scale (2 million ton) steel facilities. The problem is that demand is not yet aggregated into the purchasing agreements that project owners need to get financing to build new plants.
The Sustainable Steel Buyers Platform (SSBP) was designed to solve this problem. The SSBP brings together ambitious corporations in steel-intensive sectors like technology, manufacturing, and construction, and helps them follow through on ambitious commitments with procurement at scale to unlock financing. By convening steel purchasers and coordinating collective low-emissions steel procurement in North America, the SSBP is giving steelmakers the offtake agreements they need to spur project investment and accelerate the energy transition across this vital sector.
About the Sustainable Steel Buyers Platform
The Sustainable Steel Buyers Platform is a first-of-its-kind buyers’ group accelerating steel decarbonization through collaborative procurement and market action in the iron and steel sectors. We are working to accelerate the path to net-zero steel by driving investment in deeply decarbonized ironmaking technologies, stimulating the initial supply of near-zero emissions steel, and supporting large steel customers in achieving their supply chain emissions targets.
The SSBP was launched with support from multiple sector experts and thought partners such as the First Mover Coalition, Climate Group, and Responsible Steel. To maintain transparency throughout the joint procurement process, the Platform is building off of RMI’s work developing product-level emissions guidance with the World Business Council for Sustainable Development (WBCSD), as well as financial industry reporting standards in the Sustainable STEEL Principles.
The SSBP is complementary to efforts like the Climate Group’s SteelZero and the First Mover Coalition’s Near-Zero Steel by 2030 initiative that focus on gaining commitments and pledges towards lower emissions steel because it provides the next step towards offtake for buyers. We work closely with these groups to ensure the Platform process can help deliver on corporate targets and pledges.
In October 2024, SSBP issued its inaugural request for proposal (RFP) in the North America (NA) market, drawing broad participation from nine ambitious steel purchasers and thirteen producers seeking to advance supplies of near-zero emissions iron and steel. Since the close of the inaugural RFP, buyers and producers have engaged in term sheet negotiations, expected to conclude in late 2026. Following the SSBP’s first RFP in North America, RMI is working with regional partners and leveraging early-stage demand efforts in Japan, South Korea, and other key demand regions within Asia-Pacific to mobilize private demand and offer the tools needed to enable green iron and steel transactions at scale.
To learn more about SSBP’s regional procurement initiatives and opportunities to get involved, please refer to the procurement efforts below.
The Asia-Pacific Procurement Process
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Please contact our steel team at sustainablesteel@rmi.org with any questions.
FAQs
RMI is convening ambitious steel purchasers in a two-stage process: a request-for-information (RFI) and a request-for-proposal (RFP), launched on behalf of platform members.
The RFI was launched in Q3 2023 to seek input from steel producers on timelines, technology, and emissions thresholds for near-zero steel, as well as preference for structuring a potential green premium over a diverse range of steel products. The RFP will confirm the steelmakers’ proposed projects and associated green premium.
No. SSBP members are working collaboratively to set core design features of the RFP up to the point of price discovery on the green premium. Following this, the buyers will negotiate individual offtake agreements based on the collectively discovered green premium and other offtake arrangements (e.g., steel specifications, pricing, etc.).
Buyers are working collaboratively under the SSBP to achieve sufficient demand volume (via offtake agreements) that would enable a steelmaker to make the large capital investment necessary to transition or build a new near-zero-emissions facility. In doing so, the buyers aim to put forward a common definition of near-zero-emissions steel that can help steelmakers design their emissions reduction investment strategy.
We welcome all ambitious buyers committed to establishing offtake for near zero emissions steel to deliver on their emissions reduction targets. The buyers group will be composed of purchasers with significant annual steel consumption in North America (i.e., >10,000 t/year) who are able to commit to purchasing steel several years ahead of delivery.
The North American RFI and RfP will be open to all iron and steel producers (and their upstream and technology partners) to submit a response.
Amplifying clean demand signals is critical for the energy transition. The SSBP is complementary to efforts that focus on gaining commitments for lower-emissions steel purchasing, by providing the next step towards offtake for buyers. We are working closely with these groups to ensure the SSBP process can help deliver on corporate targets and pledges.
