Decarbonizing the Automotive Sector: The Impact of Green Steel from Hydrogen
Key Ideas
- U.S. could save 6.4 Mt of CO2-equivalent emissions annually by switching to green steel for light-duty vehicle production.
- The automotive sector's substantial decarbonization potential lies in substituting conventional steel with green steel.
- Cost increase of about $199 per vehicle, equivalent to 0.66% of a $30,000 vehicle, for using green steel in the body-in-white.
- Anticipated decline in green steel costs over time with decreasing prices of hydrogen and renewable electricity.
The report evaluates the potential of green steel produced from hydrogen in reducing greenhouse gas emissions in the U.S. automotive sector. It suggests that replacing conventional steel with green steel from green hydrogen-DRI-EAF steelmaking in the body-in-white (BiW) of light-duty vehicles (LDVs) could lead to significant emissions reductions. The analysis indicates that the U.S. has a light-duty BiW automotive steel demand of 3.9 million tonnes annually, which could be met by two new green steel facilities or retrofitted existing ones. By utilizing green steel, around 6.4 Mt of CO2 equivalent emissions could be saved each year, signifying an 84% reduction compared to conventional steel. This shift could result in avoiding about 38 Mt of CO2 equivalent emissions by 2030, akin to the reductions expected from the U.S. EPA's regulations for vehicles. Although the transition to green steel might incur an average cost increase of $199 per vehicle, the long-term outlook appears optimistic with expected cost decreases due to the commercialization of hydrogen electrolyzers and declining prices of hydrogen and renewable electricity.
Topics
Green Hydrogen
Climate Change
Decarbonization
Steel Industry
Green Steel
Automotive Sector
Emission Reductions
Latest News