Steel is indispensable for modern society. Whether in buildings, vehicles or everyday objects - the versatility and stability of this material makes it a key resource. With green steel, also known as "climate steel", we are breaking new ground to produce steel in a more sustainable and climate-friendly way.
Find out here what "green steel" actually means, the technologies behind it and the benefits of sustainable steel for your company?
Green steel refers to steel that is produced using more environmentally friendly processes in order to significantly reduce the emission of CO₂ equivalents (CO₂e). These processes are primarily based on the use of renewable energies and innovative technologies. These include, for example
Although the term "green steel" is not clearly defined and completely CO₂e-neutral steel is not yet available, all approaches share the goal of minimizing CO₂e emissions in the steel industry. The new processes mark important progress towards a more climate-friendly steel industry.
Traditional steel production usually takes place in blast furnaces that use coal as their main source of energy. This produces a large amount of carbon dioxide and other greenhouse gases. Various new technologies and processes are being used to reduce CO₂e emissions:
Green hydrogen in direct reduction
Direct reduction is an innovative process in which iron oxide is reduced directly to iron, without the detour via liquid pig iron. Hydrogen can replace fossil fuels as a reducing agent, so that only water is produced instead of CO₂. Green hydrogen, which is produced using renewable energies, is already being tested in research and pilot projects. However, its large-scale use is still in the development phase, but is considered a promising solution for significantly reducing CO₂e emissions in the steel industry in the long term.
Use of electric arc furnaces
In contrast to traditional blast furnaces, which are powered by coal, electric arc furnaces (EAF) use electrical energy, ideally from renewable sources. This technology mainly uses recycled steel scrap, thus reducing the need for primary raw materials.
Use of renewable energy
Electricity from renewable sources, such as wind or solar energy, replaces fossil fuels and enables lower-emission production. This makes it easy to reduce the product carbon footprint.
Efficiency improvements
In addition to the fundamental technological changes, continuous efficiency improvements are also helping to reduce CO₂e emissions in steel production. Modern sensor technology and AI-supported process monitoring optimize production processes, reduce energy losses and lower emissions. These measures work independently of the main technology and offer additional savings potential for the entire industry.
The regulatory requirements for the greenhouse gas footprint of steel products are constantly increasing. For steel consumers and traders, this means that the use of low-emission or green steel is becoming increasingly economically and strategically relevant.
European emissions trading (EU ETS) is making CO₂e-intensive production processes more expensive, as steel manufacturers have to purchase emissions certificates and the free allocation of these certificates will gradually expire by 2034. This will increase the cost of conventionally produced steel, while CO₂e-reduced alternatives will become more competitive in the long term.
In addition, the Carbon Border Adjustment Mechanism (CBAM) obliges importers of steel from third countries to document the CO₂e emissions of their products and pay corresponding levies. This makes the purchase of low-emission materials more attractive not only for sustainability reasons, but also from a financial perspective.
In addition, the Corporate Sustainability Reporting Directive (CSRD) increases the pressure on companies to disclose their carbon footprint in detail - including CO₂e emissions along the supply chain. Retailers and processors are therefore increasingly required to prove that they use low-CO₂e materials. At the same time, the EU taxonomy influences investment and financing decisions by defining sustainability criteria for economic activities.
It is therefore becoming increasingly important for steel consumers and traders to know the exact product carbon footprint (PCF) of the materials they trade. Targeted procurement of CO₂e-reduced steel can not only fulfill regulatory requirements, but also secure long-term competitive advantages and avoid potential additional costs.
The use of green steel has numerous benefits, both for the environment and for companies and consumers:
Hoberg & Driesch consistently focuses on sustainable solutions in steel production. With our range of CO₂-reduced steel pipes, we combine high-quality products with sustainability. As our customer, you benefit not only from high-quality steel products, but also from a positive contribution to climate protection.
We now offer CO₂-reduced steel pipes that are specially tailored to sustainability and reporting requirements. Find out more about the appropriate specifications directly next to the products and discover how we combine sustainability and quality for you.
All the details on our green thick-wall and normal-wall pipes.
Further information on our green, seamless cold-drawn precision steel tubes can be found here.
You can find out more about the CO₂-reduced seamless hydraulic and pneumatic conduits here.