{"id":2113,"date":"2023-05-03T09:06:16","date_gmt":"2023-05-03T02:06:16","guid":{"rendered":"https:\/\/gunungcapital.com\/?p=2113"},"modified":"2023-05-03T09:06:19","modified_gmt":"2023-05-03T02:06:19","slug":"trailblazing-steel-investments","status":"publish","type":"post","link":"https:\/\/gunungcapital.com\/zh\/trailblazing-steel-investments\/","title":{"rendered":"Trailblazing Steel Investments"},"content":{"rendered":"<div data-elementor-type=\"wp-post\" data-elementor-id=\"2113\" class=\"elementor elementor-2113\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-d3fd70c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"d3fd70c\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-e0307e8\" data-id=\"e0307e8\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-449fab5 elementor-widget elementor-widget-text-editor\" data-id=\"449fab5\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.16.0 - 14-09-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p><span style=\"font-weight: 400;\">Every country, region and industry is working towards a similar goal, i.e. limiting carbon emissions to 1.5\u00b0C or a maximum of 2\u00b0C, as the global economy strives towards net-zero emissions. The steel industry is responsible for around 7%<\/span><span style=\"font-weight: 400;\"> of worldwide greenhouse gas (GHG) emissions per year, making it the highest emitter. Although businesses around the globe are taking necessary measures to reduce their carbon footprint, the elimination of GHG emissions from the core manufacturing process remains a challenge. Since steel plays a pivotal role in the ordinary conduct of life, the rise of end-user industries, such as building and construction, automotive and industrial machinery, is expected to increase the demand for the metal. Considering the challenges associated with the steelmaking processes and increasing steel demand, it will not be easy for the industry to fulfill the 1.5\u00b0C requirement by 2030. The need of the hour is to adopt the best possible decarbonisation strategies.<\/span><\/p><p><span style=\"font-weight: 400;\">In its efforts to reduce emissions, the sector is considering multiple options including substitutes and scrap metal, increasing circularity of raw materials, and innovative manufacturing technologies. However, the future of the scrap metal recycling market is unpredictable. Thus, it will unlikely be a reliable option for achieving net-zero emissions. On the other hand, a revolutionary technology \u2013 the use of low-carbon hydrogen in iron manufacturing \u2013 has drawn significant attention from final investment decision (FID) makers. Energy Transmission Commission (ETC) expects industrial production capacity (for steel) to touch more than 60 million tonnes per annum (Mtpa)<\/span><span style=\"font-weight: 400;\"> by 2030, which is 130 Mtpa less than the actual capacity target of 190 Mtpa required to ensure the world\u2019s steel sector is headed towards net zero as per the 1.5\u00b0C goal. Of all the projects initiated to reach the expected production capacity, the construction of three plants (totalling 9.5 Mtpa) started after final investment approvals were received.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-adac006 elementor-widget elementor-widget-image\" data-id=\"adac006\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.16.0 - 14-09-2023 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"800\" height=\"348\" src=\"https:\/\/gunungcapital.com\/wp-content\/uploads\/2023\/05\/Screenshot-2023-05-03-085731.png\" class=\"attachment-large size-large wp-image-2117\" alt=\"\" srcset=\"https:\/\/gunungcapital.com\/wp-content\/uploads\/2023\/05\/Screenshot-2023-05-03-085731.png 861w, https:\/\/gunungcapital.com\/wp-content\/uploads\/2023\/05\/Screenshot-2023-05-03-085731-300x130.png 300w, https:\/\/gunungcapital.com\/wp-content\/uploads\/2023\/05\/Screenshot-2023-05-03-085731-768x334.png 768w, https:\/\/gunungcapital.com\/wp-content\/uploads\/2023\/05\/Screenshot-2023-05-03-085731-18x8.png 18w\" sizes=\"(max-width: 800px) 100vw, 800px\" title=\"\">\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-2a07cb0 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2a07cb0\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6be35b9\" data-id=\"6be35b9\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-db1648b elementor-widget elementor-widget-text-editor\" data-id=\"db1648b\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">An emission-focused think tank has set up numerous traditional groups, which produced favourable results to better understand the ways necessary for low-emission steelmaking plants to arrive at FIDs \u2013 accessibility of renewable energy, raw materials and value chains at reasonable prices and positive regulatory and political support from governments across regions. These findings can provide a workable solution to organisations within the industry to narrow the funding gaps and enable them to make FIDs through practical initiatives such as government subsidies for capital purchases and advance purchase agreements at introductory offers. A few <\/span><a href=\"https:\/\/www.energy-transitions.org\/wp-content\/uploads\/2023\/04\/Unlocking-the-First-Wave-of-Breakthrough-Steel-Investments-International-Opportunities-April-2023.pdf\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400;\">examples of regulatory developments<\/span><\/a><span style=\"font-weight: 400;\"> are Inflation Reduction Act (IRA), European Union Emissions Trading System (EU ETS), Industrial Demonstrations Program, Federal Buy Clean Initiative, Carbon Border Adjustment Mechanism (CBAM) and Green Deal Industrial Plan.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Steel decarbonisation is one of the most effective ways of reducing the industry\u2019s emissions and environmental impact. However, the decarbonisation journey does not seem easy given the various challenges the industry is facing currently and is expected to encounter shortly. Furthermore, the industry is affected by multiple headwinds such as microeconomic and macroeconomic factors, market changes, increasing demand for products and lack of resources.\u00a0<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-0f14ebf elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"0f14ebf\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6118546\" data-id=\"6118546\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1c2ea10 elementor-widget elementor-widget-image\" data-id=\"1c2ea10\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"800\" height=\"221\" src=\"https:\/\/gunungcapital.com\/wp-content\/uploads\/2023\/05\/Screenshot-2023-05-03-085806.png\" class=\"attachment-large size-large wp-image-2118\" alt=\"\" srcset=\"https:\/\/gunungcapital.com\/wp-content\/uploads\/2023\/05\/Screenshot-2023-05-03-085806.png 881w, https:\/\/gunungcapital.com\/wp-content\/uploads\/2023\/05\/Screenshot-2023-05-03-085806-300x83.png 300w, https:\/\/gunungcapital.com\/wp-content\/uploads\/2023\/05\/Screenshot-2023-05-03-085806-768x212.png 768w, https:\/\/gunungcapital.com\/wp-content\/uploads\/2023\/05\/Screenshot-2023-05-03-085806-18x5.png 18w\" sizes=\"(max-width: 800px) 100vw, 800px\" title=\"\">\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-8b5f946 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"8b5f946\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-1438725\" data-id=\"1438725\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4a7b12e elementor-widget elementor-widget-text-editor\" data-id=\"4a7b12e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Steel can recycle at a rate greater than 85%, which is expected to increase in the future. But there is a limited possibility that future steel demand will be met solely through scrap metal recycling. Furthermore, recycling processes are affected by copper or zinc pollutants. They adversely impact the end product\u2019s quality since they cannot be eliminated through conventional steelmaking processes, limiting the product\u2019s use in significant applications. Also, the industry has yet to see substantial developments in carbon capture and storage technologies. Given the properties of iron and steel, a high rate (more than 90%) of carbon capture will likely be required in low-emission steel manufacturing processes. More such technological advancements are necessary to meet these challenges, particularly those that have the potential to produce ore-based steel with emissions of less than <\/span><a href=\"https:\/\/www.energy-transitions.org\/wp-content\/uploads\/2023\/04\/Unlocking-the-First-Wave-of-Breakthrough-Steel-Investments-International-Opportunities-April-2023.pdf\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400;\">0.4 tons of CO<\/span><span style=\"font-weight: 400;\">2<\/span><span style=\"font-weight: 400;\"> per ton of finished product (tCO2\/t).<\/span><\/a><\/p><p><span style=\"font-weight: 400;\">The recent developments in the steel industry are directed towards the environmentally-supportive growth of the industry. The traction in steel investments due to innovative low-carbon hydrogen technology for direct reduced iron (H2-DRI) production is expected to attract more FDIs in the coming years. The technology has entrenched itself in the market, having produced significant results in the past years. DRI manufactured from fossil-based feedstocks produced <\/span><a href=\"https:\/\/www.energy-transitions.org\/wp-content\/uploads\/2023\/04\/Unlocking-the-First-Wave-of-Breakthrough-Steel-Investments-International-Opportunities-April-2023.pdf\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400;\">120 Mt of steel in 2021<\/span><\/a><span style=\"font-weight: 400;\">, equivalent to\u00a06% of the world\u2019s total steel output. However, such projects require years of planning before transitioning from FID to successful execution. Given the\u00a0current time limits, it will likely be highly challenging to achieve the necessary capacity by 2030, demanding urgent efforts to promote new projects and hasten their progression to FID.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>Every country, region and industry is working towards a similar goal, i.e. limiting carbon emissions to 1.5\u00b0C or a maximum of 2\u00b0C, as the global economy strives towards net-zero emissions. The steel industry is responsible for around 7% of worldwide greenhouse gas (GHG) emissions per year, making it the highest emitter. Although businesses around the [&hellip;]<\/p>","protected":false},"author":1,"featured_media":2122,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"_links":{"self":[{"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/posts\/2113"}],"collection":[{"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/comments?post=2113"}],"version-history":[{"count":0,"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/posts\/2113\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/media\/2122"}],"wp:attachment":[{"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/media?parent=2113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/categories?post=2113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/tags?post=2113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}