Five key enablers of BlueScope's path to net zero

BlueScope. As one of the world’s leading manufacturers of painted and coated steel products, the name is synonymous with heavy, emissions-intensive industry.

Yet the corporate has created a detailed decarbonisation pathway to net zero by 2050, underpinned by new renewable technologies and a green mineral supply chain.

Gretta Stephens, BlueScope’s Chief Executive Climate Change and Sustainability, laid out the staging posts on the road ahead when she spoke at the Industrial Net Zero Conference.

Where BlueScope sits right now

BlueScope has three steelmaking operations located in Australia, New Zealand and the US, plus a footprint in the high-growth Asian region.

While the Australian and New Zealand plants engage in primary steelmaking (using blast furnace production methods), the Ohio plant in the US is a secondary steelmaker, using recycled scrap iron in electric EAF furnaces.

The blast furnace method produces 70% of the world’s steel. The fundamental chemical processes involved rely heavily on carbon, with the steel industry producing 7-9% of global emissions.

“The materials we create are essential to modern society, so we have to find an alternative way to produce them,” Gretta said.

The challenges facing hard to abate sectors

Heavy industries like steelmaking face a bumpy road to net zero. The intense heat and huge electricity requirements of manufacture step up the challenge.

“The IEA predicts global demand for steel will increase by around a third through to 2050, which is why we need to continue primary steelmaking. We can increase our secondary works, as more scrap becomes available, but the IEA predicts it will comprise only 50% of steelmaking by 2050,” she said.

Steel is an enabler of the transition to renewable energy, she pointed out.

“Much of the infrastructure we need to drive this is made by steel – wind, solar and hydro, for instance. We estimate Australia will need more than 300,000 tonnes per annum of additional steel just to meet the 2030 targets, and 400,000 tonnes per annum more to meet the 2050 targets.”

The answer? BlueScope’s decarbonisation pathway

There are five key enablers to realising BlueScope’s vision.

1. Development of breakthrough technology to viable commercial scale
2. Access to competitively priced, firmed renewable energy
3. Availability of competitively priced hydrogen from renewable sources (below $2 per kilo target)
4. Access to sufficient quality and quantity of raw materials like prime scrap and appropriate ores
5. Policy settings to support decarbonising investment and avoid carbon leakage.

BlueScope is pursuing two main goals across its steelmaking operations. Net zero greenhouse gas emissions by 2050 is the overarching target. Shorter term, the company is also pursuing 12% carbon reduction (against 2018 baseline) for steelmaking operations by 2030, and 30% for non-steelmaking operations."

Transitioning steel to a renewable future

“Thinking big” is essential to match the scope of the challenge, Gretta insisted.

• Increasing energy efficiency

BlueScope is already reusing waste heat and gases for energy, while focusing on more scrap recycling.

• Backing emerging technology
  • The company is investigating biochar to replace some metallurgical coal at the blast furnace
  • A BlueScope/Rio Tinto pilot project is using Pilbara iron ores to produce low emissions iron feeds at Port Kembla
  • A 10MW green hydrogen electrolyser project is exploring the use of hydrogen in steelmaking processes, fostering the skills and experience necessary to develop a future hydrogen hub in the Illawarra region of NSW.
• Supporting start-ups

BlueScopeX has been created as a venture fund within the main business. This will facilitate collaboration and investment in early stage innovation and start-up companies, such as the Hysata green hydrogen electrolyser project at the University of Wollongong.

BlueScope’s longer term vision? A potential hydrogen ecosystem supported by renewable energy infrastructure and shared across multiple sectors including transport, manufacturing and renewable generation.

“We are working closely with stakeholders and customers to ensure transparency, affordability and reliability of energy going forward. An orderly transition is essential to ensure sustainability of key national assets, including the Port Kembla steelworks and thousands of downstream customers who depend on us,” Gretta said.

“Industry, customers, governments and communities all play their part in the transition to net zero. It’s amazing how quickly things can change if we all mobilise in the same direction.”