CO2 efficient steel production
There are two different ways of producing steel. The processes are differentiated according to the raw material used in the process – iron ore-based (Blast Furnace based production, BF) or scrap-based from recycled steel (Electric Arc Furnace based production, EAF). Since availablescrap today accounts for approximately 30% of the demand for new steel, we are today dependent on both steel produced from scrap and steel made from iron-ore. In 2050, it is estimated scrap-based steel will account for about 50% of demand, which means that 50% of demand will continue to be met by steel made from iron-ore.
Steel production is resource intensive and generates carbon dioxide (CO2) emissions. Around 90% of SSAB’s direct CO2 emissions are generated by iron ore-based steel production at our sites in Luleå, Oxelösund and Raahe, in particular our blast furnaces. SSAB’s operations account for 10% of Sweden’s and 7% of Finland’s CO2 emissions. However, SSAB’s blast furnace-based production is among the most CO2 efficient in the world owing to the use of high-grade iron-ore pellet and, high-quality coke, as well as efficient and uninterrupted processes. For example, our cold-rolled steel production emits approximately 6% less CO2e than the European average and as much as 17% less than the Chinese average (see the chart above).