Exploring how production growth targets and net zero ambitions can work hand in hand to achieve commercial success.
As the fifth largest manufactured commodity in the world by volume, steel represents 7-9% of global emissions. With current projections for 2050 suggesting steel demand could increase by 30% by mid-century, our client wanted to understand how they could develop and scale green steel production.
Our client, a global conglomerate, with interests in steel, construction, chemicals and FMCG, was looking to increase its steel production capacity while reducing its carbon emissions footprint at the same time. With this context, the client has asked Xynteo to develop a credible net zero pathway for their steel business balancing growth ambitions with emission reductions.
26%
Improved commercial returns found through a new decarbonised operating model vs. BAU steel production routes
2
Innovative lighthouse projects designed to support the decarbonisation roadmap and create first-mover advantage
1
Net Zero Strategy with a fully costed decarbonisation roadmap designed that would support production expansion and commercial growth
The initiative
The key objectives for the engagement:
- Innovate the business model to increase steel production capacity 2x by 2030 whilst lowering their average emissions intensity below 2 tonnes of CO2 per tonne of crude steel.
The aim was to take a holistic approach to define 2030 decarbonisation targets for their steel subsidiary by exploring various hydrogen and CCUS technology options and defining a technology and fuel transition strategy.
Xynteo’s role
- Market scoping: Baselined steel electricity and process emissions across its production value-chains and conducted a techno-commercial assessment of 12 hydrogen and CCUS technology solutions.
- Stakeholder engagement: Explored regional organic and inorganic CCS storage options, and engaged with potential chemicals, construction, and FMCG customers of CCU products to prioritise market demand.
- Solution pathway design: A 2040 net zero strategy using hydrogen and CCUS that supports commercial growth
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