Significantly reducing greenhouse gas emissions

Steel production and the environment – can they really go hand in hand? One thing is certain: steel-processing companies in Germany are in the midst of a momentous transformation. Steelworks are leading the way. The move away from blast furnaces and pulverised coal has long been a done deal. The aim is to be able to produce in a largely climate-neutral manner by the middle of the century at the latest. And so steel giants such as Thyssenkrupp, Salzgitter and ArcelorMittal are investing many billions of euros to produce ‘green steel’ under climate-neutral conditions.

To meet the climate protection targets they have set themselves, greenhouse gas emissions must be significantly reduced. This refers primarily to carbon dioxide (CO2) emissions. The challenge is enormous. According to the German Steel Association, up to seven per cent of Germany’s CO2 emissions could be saved if the steel industry’s pursuit of climate neutrality is successful. The project is now gaining momentum: by 2030, the industry aims to convert around a third of its production from blast furnaces and converters to climate-friendly processes.

Unpredictable natural gas supplies are forcing an energy transition

When it comes to sustainability, the issue of energy is of particular importance to the steel industry. Electric steel and the availability of climate-neutral hydrogen are seen as alternatives to fossil fuels. Gas was supposed to be the bridging technology on the path to climate neutrality. In theory, that is, because: with Russia’s war of aggression against Ukraine, the situation has, in a sense, turned on a sixpence overnight. In addition to dramatic price fluctuations, security of supply is no longer guaranteed. Even a complete oil and gas embargo is a distinct possibility.

The demands of climate protection and the unpredictable situation regarding natural gas supplies impressively highlight just how important the transformation of the steel industry is at present. The German Steel Association estimates the annual consumption of natural gas by the steel industry alone at around 2.1 billion cubic metres. The gas is used as a fuel for heating and as a reducing agent in various stages of pig iron and steel production, as well as in further processing. A look at the German economy’s dependence on Russian natural gas illustrates the scale of the issue: to maintain the economic status quo prior to the outbreak of the war in Ukraine, the entire German industry requires 38 billion cubic metres of natural gas per year.

Steel – “Champion of the circular economy”

Against this backdrop, steel processing companies are supporting the government’s efforts to end this dependency in the energy sector and accelerate the expansion of renewable energies. Beyond mere energy supply, steel processors are at an advanced stage in terms of sustainability. Material cycles, which are currently being laboriously developed in many other sectors of the economy, have long been part of everyday practice in the steel processing industry.

Frank Schulz, a member of the Supervisory Board at ArcelorMittal, even describes steel as the “champion of the circular economy”. Recycling reduces consumption and emissions and ensures that raw materials are reused. Steel and its by-products impress with a high degree of reuse: 93 per cent of steel is recycled, with dust and sludge accounting for over 90 per cent. 95 per cent of slag and gases are reused – and as much as 97 per cent of mill scale.

Sustainability is more than just security of supply

Although energy and the circular economy dominate public debate on sustainability in the steel industry, the concept is far more comprehensive. A look at the day-to-day operations of Rostfrei Stahl Geisweid (RFSG) reveals that the company has identified a total of ten categories of sustainable corporate management:

  1. Occupational health and safety
  2. Products and services
  3. Infrastructure
  4. Use of resources
  5. Use of water, land and air
  6. Energy
  7. Supply chains
  8. Local activities
  9. Training and further education
  10. Social engagement

Sustainable thinking and action inevitably place the focus on resource consumption. In addition to energy and CO₂ emissions, this also includes water, for example. RFSG assures customers, suppliers and employees that it manages resources responsibly. The guiding principle is to use energy as efficiently as possible and to keep the environmental footprint as small as possible. The long-term goal is to achieve near-carbon neutrality. Delivery capability is one of the company’s most important strengths. Trust with customers and suppliers is built on this foundation. The company’s own sustainability principle applies here too. RFSG sources steel from within Europe. There are several reasons for this approach. Experience shows that the quality from European suppliers is generally higher. At the same time, CO2 emissions are lower.

Social Responsibility

Another aspect of sustainability: as a major employer, RFSG takes responsibility within the local community. Secure jobs and social engagement demonstrate the company’s close ties to its local community. Not least for this reason, RFSG makes an important contribution to skills development. Tomorrow’s economy depends not only on science, technology and engineering. Through continuous training and further education, as well as other support measures, RFSG ensures that all employees achieve their individual career goals. This, too, is in line with our understanding of sustainability.

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