A promising new analysis shows that if the auto industry transitions to green steel, it could drastically reduce the harmful pollution caused by vehicle production.
CleanTechnica reported that this recent analysis from Transport & Environment was based on a report created by environmental consultancy Ricardo regarding the auto industry in Europe.
According to the report, the automotive sector accounts for about 12% of global steel demand and 17% in Europe. The auto industry's transition to green (low-carbon) steel could be a significant component of Europe's overall strategy to reduce carbon pollution.
Traditionally, coal and natural gas are used in a blast furnace to manufacture steel, per the American Iron and Steel Institute. Green steel, however, is produced using green hydrogen and renewable electricity via electric arc furnaces. EAFs cut down on pollution by processing scrap materials using electrical currents.
With the car sector's goal of becoming carbon-zero by 2050 and tailpipe emissions dropping, car production-related emissions have become the next hurdle.
T&E has called on lawmakers to encourage the auto industry to switch to green steel by assigning them target goals. If vehicle manufacturing transitions to 40% green steel by 2030, it would reduce carbon pollution by over 7.6 million tons.
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This change in 2030 would only add about €57 (just over $63) to the cost of an EV in Europe.
Cars policy manager at T&E, Alex Keynes, said, "For less than a tyre change, Europe can build a green steel industry. The extra cost will be negligible, and, in time, it will be cheaper than conventional steel. But we first need lawmakers to kick start the shift to low-carbon steel in the automotive industry."
T&E is pushing for 75% of steel in new cars to be green steel by 2035 and 100% by 2040.
Switching to green steel has a low premium in the near term but an insignificant cost difference in the future, benefitting both manufacturers and consumers.
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According to World Steel Association, the total amount of crude steel produced around the globe in 2023 was over 2,074 tons. Transitioning steel production to green steel could have a massive environmental impact.
Experts and organizations are working to make this transition possible. From utilizing green hydrogen in manufacturing to the creation of new environmental regulations to upgrading recycling methods, experts are making bold changes for a safer future.
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