WEBVTT 1 00:00:01.300 --> 00:00:02.350 Steel. 2 00:00:02.360 --> 00:00:06.230 It's a $1 trillion market and demand is growing. 3 00:00:06.880 --> 00:00:09.890 Can that be met by electric steel mills - which need 4 00:00:09.900 --> 00:00:11.550 a lot of electricity? 5 00:00:11.560 --> 00:00:15.050 China has long since overtaken Europe and North America as 6 00:00:15.060 --> 00:00:16.919 the world's largest producer. 7 00:00:16.930 --> 00:00:19.509 Electricity is expensive in the EU. 8 00:00:19.520 --> 00:00:22.900 Steel producers could consider moving to North and South America. 9 00:00:23.810 --> 00:00:26.479 I think it's a political challenge and also a sort 10 00:00:26.489 --> 00:00:30.376 of an emotional challenge for the metallurgists. 11 00:00:30.420 --> 00:00:34.870 And what do old car tires have to do with steel production? 12 00:00:42.010 --> 00:00:46.320 The world population is growing quickly -- especially in Asia. 13 00:00:47.710 --> 00:00:50.020 People need a place to live, of course. 14 00:00:50.030 --> 00:00:54.840 That means more houses, power grids and roads, just like in New Delhi. 15 00:00:55.310 --> 00:00:59.380 With over 33 million inhabitants, it is one of the fastest growing 16 00:00:59.390 --> 00:01:00.900 cities in the world. 17 00:01:00.910 --> 00:01:03.300 About half of the world's steel is used for 18 00:01:03.310 --> 00:01:06.880 infrastructure and homes - and demand is rising. 19 00:01:08.410 --> 00:01:13.440 In 2022, global production was around 1.9 billion metric tons. 20 00:01:13.440 --> 00:01:19.920 It’s expected to rise by a further 20 percent by 2050. 21 00:01:19.920 --> 00:01:27.440 The way we make steel hasn’t really changed in over 150 years. 22 00:01:27.440 --> 00:01:31.870 Around 70% of iron is produced in traditional blast furnaces before 23 00:01:31.880 --> 00:01:33.970 its refined into steel. 24 00:01:33.980 --> 00:01:38.959 This creates a lot of CO2, for every ton of steel around 2 tons 25 00:01:38.959 --> 00:01:40.850 of carbon dioxide. 26 00:01:41.590 --> 00:01:44.640 An alternative is to replace coal with green hydrogen. 27 00:01:44.770 --> 00:01:47.480 This eliminates the blast furnace, replacing it with 28 00:01:47.490 --> 00:01:50.760 more climate-friendly ones, like an electric arc furnace. 29 00:01:51.800 --> 00:01:55.570 Instead of CO2, ordinary water vapor is produced. 30 00:01:56.570 --> 00:02:03.600 This process can reduce emissions by up to 80%. 31 00:02:03.600 --> 00:02:08.010 The result is what’s known as "green steel" - it' a fuzzy term. 32 00:02:08.139 --> 00:02:12.570 What does it mean exactly? 33 00:02:12.570 --> 00:02:14.553 "There is no one who can 34 00:02:14.677 --> 00:02:15.730 prevent people from using 35 00:02:15.730 --> 00:02:17.220 the word green, unfortunately. 36 00:02:17.220 --> 00:02:18.220 This is how 37 00:02:18.220 --> 00:02:19.137 I would describe green steel. 38 00:02:19.370 --> 00:02:21.180 Green steel is the one that does not use carbon, 39 00:02:21.190 --> 00:02:26.180 that does not use any fossil fuel products in its 40 00:02:27.030 --> 00:02:30.470 in the process and that does not produce CO2. 41 00:02:31.570 --> 00:02:35.040 Researchers like Ayman El-Zoka are working on other ways 42 00:02:35.060 --> 00:02:36.610 of producing green steel. 43 00:02:36.620 --> 00:02:38.720 But more on that later! 44 00:02:38.730 --> 00:02:41.500 Back to coal-fired blast furnaces. 45 00:02:41.900 --> 00:02:45.660 Turning iron ore into iron can generate an incredible 46 00:02:45.660 --> 00:02:48.390 2,000 degrees Celsius or more! 47 00:02:48.400 --> 00:02:50.290 This uses a lot of energy. 48 00:02:50.300 --> 00:02:54.480 And energy is also the biggest cost driver for steel manufacturers. 49 00:02:56.840 --> 00:02:59.990 In 2000, the biggest steel producers were still in 50 00:03:00.000 --> 00:03:02.020 Europe and North America. 51 00:03:02.510 --> 00:03:04.610 China has left them far behind. 52 00:03:04.620 --> 00:03:07.770 It now produces 54% of the world's steel. 53 00:03:08.370 --> 00:03:11.030 India has almost doubled production. 54 00:03:12.100 --> 00:03:14.530 At the very top is the Chinese state-owned 55 00:03:14.540 --> 00:03:16.280 China Baowu Group. 56 00:03:17.080 --> 00:03:19.210 The European based company ArcelorMittal - owned by an 57 00:03:19.220 --> 00:03:23.850 Indian entrepreneur - is in second place, followed by 5 58 00:03:23.850 --> 00:03:27.690 other groups from China, and one each from Japan and South Korea. 59 00:03:29.490 --> 00:03:32.570 In tenth place is Tata Steel from India. 60 00:03:33.750 --> 00:03:37.540 The China Baowu Group wants to switch to green steel and become 61 00:03:37.550 --> 00:03:39.680 carbon neutral by 2050. 62 00:03:39.690 --> 00:03:42.720 ArcelorMittal from Luxembourg has announced the same. 63 00:03:42.730 --> 00:03:45.720 One difference, however, is that the company is suffering from 64 00:03:45.730 --> 00:03:47.860 the high energy prices in Europe. 65 00:03:47.870 --> 00:03:51.060 Last fall, it had to cut production at four German sites: 66 00:03:51.150 --> 00:03:54.000 a consequence of the war in Ukraine. 67 00:03:54.340 --> 00:03:56.950 The company is not giving interviews at the moment. 68 00:03:56.960 --> 00:03:59.270 But there has been talk of investing elsewhere, 69 00:03:59.280 --> 00:04:03.130 such as in North and South America - where energy is less expensive. 70 00:04:03.130 --> 00:04:08.620 ArcelorMittal has been at home in Brazil for some time. 71 00:04:11.390 --> 00:04:15.430 The country is also rich in raw materials, including iron ore. 72 00:04:16.140 --> 00:04:19.270 And perhaps more importantly, over 80% of its 73 00:04:19.279 --> 00:04:21.730 electricity comes from renewables. 74 00:04:21.740 --> 00:04:24.950 The country has the cheapest wind energy in the Americas. 75 00:04:24.950 --> 00:04:30.980 ArcelorMittal now wants to invest in a giant wind farm - and thus cover 76 00:04:30.990 --> 00:04:39.500 almost 40 percent of its electricity needs in Brazil by 2030. 77 00:04:39.500 --> 00:04:41.323 This is a great opportunity, because 78 00:04:41.569 --> 00:04:43.041 to produce green hydrogen you need 79 00:04:43.200 --> 00:04:45.183 renewable energies, especially solar, 80 00:04:45.474 --> 00:04:46.869 wind and hydropower. 81 00:04:47.440 --> 00:04:51.630 And Brazil is a leader here, but so are Mexico, Argentina and Chile. 82 00:04:52.170 --> 00:04:54.480 We have many of the necessary natural resources in 83 00:04:54.490 --> 00:04:57.600 the ground, the air and on land for renewable energy and 84 00:04:57.610 --> 00:05:00.750 for producing more green hydrogen, not just for steel production. 85 00:05:05.610 --> 00:05:07.720 But what does that mean for Europe? 86 00:05:07.730 --> 00:05:11.230 People are afraid that the continent will be left behind as a location for 87 00:05:11.240 --> 00:05:14.520 heavy industry - taking jobs and prosperity with it. 88 00:05:14.700 --> 00:05:18.380 In Germany, companies pay 6 times as much for a kilowatt hour 89 00:05:18.380 --> 00:05:20.610 of electricity as in Brazil. 90 00:05:20.620 --> 00:05:22.450 But perhaps there is a way out. 91 00:05:22.460 --> 00:05:24.790 By decoupling the value chain. 92 00:05:24.800 --> 00:05:27.410 The energy-intensive iron production we mentioned at the 93 00:05:27.420 --> 00:05:29.170 beginning is only one part of it. 94 00:05:29.180 --> 00:05:31.110 Steel is produced in the second step. 95 00:05:31.120 --> 00:05:33.290 What we should do in the future is that we should 96 00:05:33.300 --> 00:05:35.005 instead import iron units 97 00:05:35.005 --> 00:05:36.315 and do Steel. 98 00:05:36.640 --> 00:05:39.320 I think it's a political challenge and also a sort 99 00:05:39.330 --> 00:05:43.820 of an emotional challenge for the metallurgists and not having 100 00:05:43.830 --> 00:05:47.360 the iron making on site is emotional but it doesn't 101 00:05:47.370 --> 00:05:53.070 really make any difference in terms of profitability or so for 102 00:05:53.080 --> 00:05:56.990 the security of supply for the operators. 103 00:05:57.060 --> 00:06:00.210 It's a relatively small part of the total operation. 104 00:06:00.540 --> 00:06:03.480 But such ideas aren’t very popular in Europe. 105 00:06:03.490 --> 00:06:06.550 The European Union is working on financial incentives to get 106 00:06:06.560 --> 00:06:09.090 industry to invest in green technology. 107 00:06:09.100 --> 00:06:12.030 Germany is also planning to subsidize energy-intensive 108 00:06:12.040 --> 00:06:16.589 companies with the equivalent of around 75 billion dollars. 109 00:06:16.589 --> 00:06:20.160 Alongside Arcelor Mittal, Thyssenkrupp is also likely to 110 00:06:20.170 --> 00:06:21.940 benefit from this soon. 111 00:06:21.950 --> 00:06:24.360 Both companies are investing in hydrogen-powered 112 00:06:24.370 --> 00:06:27.640 plants in Germany -- for iron production. 113 00:06:28.190 --> 00:06:30.960 It's a dangerous game, I would say, because the consequence might 114 00:06:30.970 --> 00:06:34.180 actually be that you're not implementing the solution 115 00:06:34.190 --> 00:06:36.260 that is probably the best in the long run. 116 00:06:36.270 --> 00:06:41.640 If you get a lot of subsidies, you might establish it locally in Europe. 117 00:06:41.650 --> 00:06:44.640 And then there is a huge challenge to get competitive 118 00:06:44.650 --> 00:06:47.980 pricing on the electricity, for instance, for green hydrogen. 119 00:06:48.730 --> 00:06:51.880 The HYBRIT project in Sweden, for example, aims to bring 120 00:06:51.890 --> 00:06:56.460 the first truly fossil-free steel to market from 2026 - using 121 00:06:56.470 --> 00:07:00.060 green hydrogen and a more climate-friendly electric furnace. 122 00:07:00.210 --> 00:07:03.180 A ton is expected to cost around $300 more than 123 00:07:03.190 --> 00:07:06.330 conventional steel – that’s about 20-30 per cent more. 124 00:07:08.140 --> 00:07:11.450 Price aside, are individual plants even enough to make 125 00:07:11.460 --> 00:07:13.840 a difference in the green transformation? 126 00:07:13.850 --> 00:07:18.030 The steel industry produces around 8 percent of global CO2 emissions. 127 00:07:18.710 --> 00:07:21.740 And many companies are not very transparent when it comes to 128 00:07:21.750 --> 00:07:24.440 climate targets - according to a study. 129 00:07:26.540 --> 00:07:28.070 What is lacking is 130 00:07:28.236 --> 00:07:30.074 companies’ detailed plans or actually 131 00:07:30.480 --> 00:07:32.457 explaining their way 132 00:07:32.485 --> 00:07:33.740 to reaching those targets. 133 00:07:34.273 --> 00:07:39.570 So it might be quite simple for a company to set a target, 134 00:07:39.580 --> 00:07:43.270 but not actually thinking about what measures they need to take 135 00:07:43.280 --> 00:07:46.030 to actually reach those targets. 136 00:07:46.040 --> 00:07:48.930 And this is what we're missing. 137 00:07:49.140 --> 00:07:54.250 And that is needed now, especially in terms of short term 138 00:07:54.260 --> 00:07:56.260 versus long term targets. 139 00:07:56.270 --> 00:08:00.780 But one thing is clear: Dirty, coal-fired blast furnaces have to go. 140 00:08:00.850 --> 00:08:04.400 And more efficient methods are needed to produce green steel. 141 00:08:04.490 --> 00:08:07.880 The Max Planck Institute, where Ayman El-Zoka is conducting 142 00:08:07.890 --> 00:08:12.380 research, has received the equivalent of 2.7 million dollars from the EU. 143 00:08:12.650 --> 00:08:16.900 The goal: produce large quantities of steel with little hydrogen 144 00:08:16.910 --> 00:08:18.230 and energy input. 145 00:08:18.240 --> 00:08:22.820 These things can actually lead into an accelerated integration 146 00:08:22.870 --> 00:08:25.200 of green steel into the steel-making 147 00:08:25.210 --> 00:08:29.820 infrastructure and maybe hopefully it overtaking the steel production in 148 00:08:29.830 --> 00:08:32.379 Europe and in the and in the whole world. 149 00:08:32.460 --> 00:08:35.820 Researchers at a university in Australia, on the other hand, 150 00:08:35.900 --> 00:08:38.899 are focusing on the circular economy. 151 00:08:39.040 --> 00:08:42.150 Their idea is to recycle scrap metal. 152 00:08:42.160 --> 00:08:45.090 And old car tires are being used, too. 153 00:08:45.100 --> 00:08:48.510 It sounds strange, but there is hydrogen in the rubber. 154 00:08:48.590 --> 00:08:51.740 And it really can replace coal in steel production. 155 00:08:53.960 --> 00:08:55.383 We always say to people, 156 00:08:55.400 --> 00:08:56.559 this is not about burning. 157 00:08:56.960 --> 00:08:58.352 This is not 158 00:08:58.352 --> 00:08:59.429 about combustion to release energy. 159 00:08:59.429 --> 00:09:00.920 Absolutely not. 160 00:09:01.563 --> 00:09:06.220 Indeed, we have been very particular that in all of our work, 161 00:09:06.270 --> 00:09:10.000 we want to be able to prove that those, you know, 162 00:09:10.010 --> 00:09:12.120 molecules that we do liberate. 163 00:09:12.130 --> 00:09:14.500 And, of course, we've talked about, you know, 164 00:09:14.510 --> 00:09:16.780 hydrogen and we've talked about carbon. 165 00:09:16.790 --> 00:09:21.900 We want to be able to have those elements as part of the process. 166 00:09:22.150 --> 00:09:24.210 We don't want to burn it. 167 00:09:24.220 --> 00:09:28.394 We want those to participate in the chemical reactions. 168 00:09:28.400 --> 00:09:30.710 This Maybe is hard to understand. 169 00:09:30.720 --> 00:09:34.190 But the heat in the electric furnace causes the rubber to break down into 170 00:09:34.210 --> 00:09:37.750 its components without producing any toxic substances. 171 00:09:38.000 --> 00:09:40.600 The idea is to use waste as a resource. 172 00:09:40.610 --> 00:09:44.910 Molycop in Australia is one company that is already using this. 173 00:09:44.980 --> 00:09:45.950 The downside? 174 00:09:45.960 --> 00:09:47.970 It doesn't reduce emissions. 175 00:09:47.980 --> 00:09:51.730 And worldwide, there is too little scrap to meet the huge demand. 176 00:09:54.270 --> 00:09:57.940 So what else can be done to transform the steel industry? 177 00:09:59.740 --> 00:10:02.450 I would also say that one 178 00:10:02.559 --> 00:10:04.582 of the important pieces missing is 179 00:10:04.760 --> 00:10:06.356 the creation of a demand 180 00:10:06.356 --> 00:10:07.549 for green steel. 181 00:10:07.900 --> 00:10:13.520 So if there's a clear demand for green steel, companies would also 182 00:10:13.530 --> 00:10:18.100 be more willing and more attracted to invest in these technologies. 183 00:10:18.750 --> 00:10:21.740 The fact is that the world's population is growing 184 00:10:21.750 --> 00:10:24.080 and with it the demand for steel. 185 00:10:24.090 --> 00:10:26.980 New technologies and research are important to produce 186 00:10:26.990 --> 00:10:29.330 large quantities of green steel. 187 00:10:29.340 --> 00:10:32.410 But strategic considerations about where to produce it in the 188 00:10:32.429 --> 00:10:34.520 future are also important. 189 00:10:34.530 --> 00:10:38.260 Countries like Brazil are far ahead in expanding green energy. 190 00:10:38.710 --> 00:10:41.100 They could increase iron production. 191 00:10:41.110 --> 00:10:43.590 Europe, on the other hand, can import iron, 192 00:10:43.600 --> 00:10:46.550 develop steel production - and keep jobs. 193 00:10:46.559 --> 00:10:48.530 But it's not even clear whether European based 194 00:10:48.540 --> 00:10:51.479 companies will want to relocate production. 195 00:10:52.760 --> 00:10:56.390 They benefit greatly from the billions in subsidies in the EU, 196 00:10:56.400 --> 00:10:57.819 after all. 197 00:10:58.710 --> 00:11:01.770 But the effect of these subsidies is controversial, 198 00:11:02.080 --> 00:11:04.300 because they can also hinder change.