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| China near zero carbon steel line |
Baowu Steel Opens 1 Million-Ton Hydrogen-Based Line
China has launched its first near-zero carbon steel production line in Zhanjiang. The line has a 1 million-ton capacity and uses hydrogen-based direct reduced iron (DRI) combined with an electric arc furnace. As a result, carbon emissions can be reduced by 50–80% compared with traditional steelmaking methods.
The hydrogen-based blast furnace achieves metallization targets, while electric furnaces improve energy efficiency. Meanwhile, the project aligns with China’s 14th Five-Year Plan for high-quality, low-carbon steel development. This initiative strengthens domestic steel capabilities without compromising supply stability.
Strategic Impacts on Energy Efficiency and Green Transformation
In addition, the China Iron and Steel Association launched an “extraordinary energy efficiency” initiative. Therefore, 2024 alone saved energy equivalent to 10.5 million tons of standard coal and reduced emissions by 27.5 million tons. The new line supports China’s green transition and positions Baowu Steel as a leader in sustainable steel production.
This approach also encourages high-end steel enterprises to expand while maintaining overall supply. As a result, China’s measured strategy mitigates risks of market disruption while promoting decarbonization across the steel sector.
ScrapInsight Commentary
China’s near-zero carbon steel line demonstrates a transformative step in green steel production. The combination of hydrogen DRI and electric arc furnace may redefine scrap utilization and decarbonization benchmarks. Policymakers and investors should anticipate gradual shifts in global steel pricing and sustainability standards.
