The steel industry produces about 28 per cent of all industrial greenhouse gas emissions and 7–9 per cent of all climate-warming emissions in the world. Despite the effects on the environment, steel demand continues to grow.
For companies like Purmo Group participating in WWF’s campaign, steel is a key part of their business. To minimise the emissions of steel production, steel manufacturers are encouraged to move from current coal-based production to electric arc furnaces and hydrogen-based reduction, and increase the amount of iron and scrap steel as raw material. The electricity for the electric-arc furnaces can also be produced in low-emission ways, such as wind and solar power. Building a cleaner energy infrastructure also requires steel.
”Steel represents approximately 50% of all raw material purchases in Purmo Group. As pioneers in our industry, on 6 November 2023, we were delighted to announce a binding agreement with H2 Green Steel to purchase 140,000 tonnes of green steel between 2026-2033. With this commitment, we will secure the supply of green steel and start production of green steel products. We would like to welcome other players in the steel industry to join us in greener production and a cleaner future”, says Sam Hodlin, Head of Sustainability, Safety and Well-being of Purmo Group.
”The steel industry plays a decisive role in whether global warming can be limited to below 1.5 degrees. Technological solutions to minimise emissions are already available, but investments in coal-based production that accelerate climate change are still being made. Purmo Group’s commitment to purchasing green steel demonstrates leadership and responsibility, which is needed from all operators using steel”, comments Bernt Nordman, Head of Climate programme at WWF Finland.
WWF Finland’s Ready for Green Steel campaign runs until the end of 2023. Read more about the campaign at: https://wwf.fi/en/ready-for-green-steel/.