Green Steel Market

The green steel market involves production and distribution of steel using environmentally sustainable processes that aim for reduced carbon emissions, minimum energy consumption, and minimum dependency on traditional steelmaking methods. Green steel is gaining attention for its potential to significantly reduce the carbon footprint of the steel industry, which is a major contributor to global greenhouse gas emissions. As environmental concerns grow, industries are seeking more sustainable alternatives.

The global green steel market size is expected to reach a valuation of US$47.2 Bn by the end of 2030. The market value is all set for a stellar CAGR of more than 122% during 2023 - 2030.

Green steel is produced using technologies like hydrogen-based direct reduction, and electric arc furnaces powered by renewable energy sources. Unlike traditional blast furnaces that rely on coal, green steel production methods use hydrogen or electricity, reducing the overall carbon emissions and resource consumption.

Investors are keen because of the potential of green steel for long-term environmental sustainability and alignment with climate goals. It can also lead to market differentiation, as consumers and industries increasingly value products with lower carbon footprints.

Major challenges in front of the market participants include high initial investment costs for new technologies, transitioning from established steelmaking processes, securing a consistent supply of renewable energy and hydrogen, and ensuring the scalability of green steel production to meet global demand while maintaining competitiveness.