A survey shows that big steelmakers are not switching to renewable energy sources.

A survey of 18 major firms revealed that the world's largest steelmakers are falling further behind in their shift to low-carbon production. Some still rely on fossil fuels as their primary source of energy.

The steel industry is responsible for around 7% of the global CO2 emissions. This is about the same as India. Coal-fired blasting furnaces produce 2 tons of CO2 per ton of output.

There are alternative technologies, such as electric arc-furnaces (EAFs), which can be powered by renewable sources.

The climate group Action Speaks Louder, based in Sydney, said that some of the biggest names in the industry still rely on fossil fuels to provide 99% of their energy between 2022-2023.

Laura Kelly, ASL’s strategy director, and survey author, says that steel is a sector "hard to reduce". However, the biggest obstacle is affordability.

She said that "this messaging about 'hard abate' still implies it is not technically possible."

SSAB in Sweden, which sourced nearly 20% of its energy from renewable sources, was the best performer, but South Korea had some of the worst performers.

Hyundai Steel, Dongkuk Steel, and Posco all had a share of renewables that was zero or very close to zero in their energy consumption, despite the fact that they produced large amounts of steel using EAFs. The firms did not respond to any requests for comments.

Kelly stated that some companies have an interest in maintaining the status-quo due to investments made in fossil fuel infrastructure such as import terminals and pipes.

JSW Steel, an Indian steel company, sourced just 0.4% of their energy from renewable sources. The company aims to use clean energy and waste gases in all of its steel operations by 2030.

Baosteel is China's largest steelmaker. In 2022, it will also source 0.4% of its electricity from renewable sources. The company said it was drafting new clean energy goals.

Carbon pricing initiatives will increase pressure on steelmakers to switch to cleaner energy.

Kelly stated that "if it does not hurt them financially, it hurts them strategically as they are behind on this transition plan." (Reporting and editing by Kim Coghill; Additional reporting in Beijing by Amy Lv; Reporting by David Stanway)

(source: Reuters)