A warehouse equipment manufacturer requires a plentiful supply of steel to make manual handling and storage equipment.
A major disadvantage of traditional steel manufacturing is that it uses coal-fired blast furnaces that produce high levels of carbon emissions, which is linked to climate change. Steel manufacturers are tackling this issue by using electric arc furnaces (EAFs) to make greener steel with low carbon emissions.
A recent report by Global Energy Monitor (GEM) reveals that 93% of new steelmaking capacity uses electric arc furnaces. In 2020, 36% of steelmakers used EAFs, but in 2023, this increased to 92%.
The UK government has pledged substantial funding for Tata Steelworks in Port Talbot to replace two blast furnaces with electric arc ones.
India is the leading global steel producer, with China in second place. China is building more steel plants than India, but it has been reported that the Chinese authorities have issued no new permits for coal-fired steelmaking in 2024. However, India is still constructing steel plants with high-emission furnaces.
The International Energy Agency (IEA) has a target of net-zero carbon emissions by 2050, but there are fears that, despite progress being made, this target will not be reached. The GEM program director for heavy industry. Caitlin Swalec from GEM is optimistic, saying:
“The progress is promising for a green steel transition. Never before has this much lower-emissions steelmaking been in the pipeline.”
She supports the steel industry’s move towards stopping coal use in steel production.
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