Green steel could reach cost parity by 2050

Use of hydrogen in supply chain and co-location of manufacture with renewables could greatly reduce cost of green steel production, according to Oxford University study

Green steel produced using hydrogen can reach price parity with steel made using traditional carbon-intensive processes by 2050, according to a study by researchers at Oxford University’s Department of Engineering Science. The study modelled 12 different supply-chain formats for meeting Japanese demand for steel from Australian iron ore. Japan is the world’s second-biggest steel exporter after China. Under a model where high-quality renewables are used to power manufacturing facilities next to iron ore reserves in Western Australia, the falling cost of renewables and hydrogen mean steel can be produced for A$716-948/t ($500-661/t) in 2050, the study found. The current steel price is highly v