Ultra-Low Emission Steel: A Significant Leap Forward
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- June 1, 2025
The recent Steel Industry Energy Conservation and Emission Reduction Conference held in Beijing has shed light on China's ambitious efforts to reinvent its steel production processes, aiming to establish a cleaner ecosystem in the sectorGuided by the China Iron and Steel Association and organized by the Metallurgical Industry Planning and Research Institute, this fifteenth conference highlighted the significant advances made in the industry’s transformation towards ultra-low emissionsThrough comprehensive alterations to existing systems, investments exceeding 600 billion yuan have been mobilized, reflecting the country's commitment to evolving its steel manufacturing practices.
China stands as the cornerstone of global steel production and consumption, operating under the weight of some of the highest outputs worldwideThe challenges faced in reducing emissions are formidable, yet recent statistics suggest a breakthrough in these endeavorsTo date, approximately 43% of the crude steel capacity has undergone extensive renovation, while 39% has seen improvements in key areasThis progress has translated into a remarkable 60% reduction in pollutant emissions from the steel sector, placing China at the forefront of international emission performance standardsNotably, cities with highly concentrated steel production reported an average reduction of 24% in PM2.5 levels compared to figures from before 2018. The cities of Tangshan and Handan, both central to steel manufacturing, showed marked improvements, with PM2.5 levels dropping by 31% and 30% respectively.
What is particularly groundbreaking about the ultra-low emission strategies is their departure from the traditional post-process pollution control mindsetBy integrating structural adjustments in industry and transport along with investments in energy-saving technologies, these new strategies aim for a synergistic effect between controlling pollutants and curtailing greenhouse gas emissionsThe overhaul focuses on organized and unorganized emissions as well as cleaner transport solutions, setting a comprehensive framework for full-process renovations
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Companies are encouraged to shift from long to short processes in steelmaking, utilize alternative raw materials, implement gas recovery systems, and adopt energy-saving technologies while transitioning from road to rail and from oil to electricityEstimates indicate that these ultra-low emission strategies could cut carbon emissions by an additional 1% to 2% as they effectively offset the rise in emissions from end-of-pipe management strategies, potentially saving around 40 million tons of CO2 emissions.
Post-renovation, steel enterprises have not only elevated their environmental management capabilities but also transformed their operational landscapesThe industry’s concentration in production and the proportion of advanced capacities have significantly increasedUnder the proactive guidance of relevant national departments, major steel producers in Shandong province moved their facilities from the heavily polluted "2+26" cities in the Beijing-Tianjin-Hebei region to coastal manufacturing locationsFurthermore, all furnaces below 1,000 cubic meters and converters below 100 tons in Hebei have been upgradedAccording to data reported by the CISA, enterprises that accomplished ultra-low emissions renovations demonstrated a profit margin 2.6 times greater than that of their counterparts.
"The actions taken by the Chinese steel industry in promoting green, low-carbon, and environmentally friendly practices are resolute, the investments substantial, and the results outstanding," noted Huang Dao, Deputy Chief Engineer of the China Iron and Steel AssociationPolicies encouraging ultra-low emissions play a significant role in steering the industry towards sustainable, high-quality growth, while also providing a notable stimulus for environmental and energy-efficient investmentsAs the landscape evolves, there is a growing need for more differentiated policies to support these initiatives.
Liu Bingjiang, Chief Engineer of the Ministry of Ecology and Environment, highlighted that the ultra-low emissions concept merges technology, policy, and management innovations to promote the intersection of digitization, intelligence, and greening within traditional industries
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This model has implications for other major sectors, particularly through its introduction of clean transport requirements into the low-emission framework, creating pathways for advancements in new energy commercial vehicles.
Despite the strides made, the road ahead remains filled with formidable challengesLiu indicated that the next phase will involve rigorous collaborations with various ministries to foster a more profound integration of greening with traditional sectors, thereby cultivating new productive forces and solidifying existing achievements in green development.
Key initiatives on the agenda include steadfastly completing the ultra-low emissions transformation by the end of 2025, with an unwavering target for 80% of crude steel production capacity to achieve complianceFor the remaining 20% of enterprises yet to initiate their renovation, the Ministry of Ecology and Environment, alongside relevant authorities, will implement differentiated management strategiesCurrently, there are over 400 million tons in crude steel capacity still pending renovation, shifting the focus from priority areas to non-priority regions—an adjustment that requires strategic stability and commitment from the steel industryEntities yet to complete their upgrades must prioritize achieving quality and efficiency, establishing long-term mechanisms for those already compliant.
Furthermore, it is crucial to implement a strategy of "fostering the capable and eliminating the unable," safeguarding the development of green, high-quality productive forcesThe years with the most extensive ultra-low emissions upgrades have corresponded with peak profitability for the sectorThus, the targeted promotion of advanced practices while weeding out less effective operations plays a vital regulatory role in the industry's overall conditionFuture management will prioritize clarifying these differentiated strategies, increasing encouragement for leading practices while pushing for improvements among lagging counterparts, thus unleashing the full potential of advanced productivity through tailored policies.
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