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greentec steel next generation

THE NEXT GENERATION OF STEEL PRODUCTION

greentec steel - our path to a green future

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Major challenges in the European steel industry

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The technological transition to green production is facing the entire European steel industry with major challenges. voestalpine, Austria’s only producer of crude steel and a global pioneer in environmental protection, has drawn up an ambitious phased plan for green steel production. Our commitment and investments in environmental and climate protection form part of our responsibility towards future generations.

greentec steel our ambitious plan for green steel production: in the first step of this phased approach, one electric arc furnace (EAF) powered by green electricity will be built at each of the sites in Linz and Donawitz aiming to reduce CO2 emissions by 50 %. Starting in 2027, the two electric arc furnaces will enable voestalpine to produce around 2.5 million tons of CO2-reduced steel annually: 1.6 million tons in Linz, and 850,000 tons in Donawitz. As of 2030 to 2035, we plan to replace another blast furnace at each of the sites in Linz and Donawitz. 

To achieve the goal of steel production with net zero CO2-emissions by 2050, we are actively researching into several new processes and investing in pilot projects that demonstrate new ways to produce steel. Another, particularly important, prerequisite for decarbonizing steel production is the availability of sufficient quantities of renewable energy at commercially realistic prices. This is the only way which tomorrow’s technologies can be applied in a truly competitive manner.

Major reduction in CO2 emissions by 2029

One electric arc furnace in both Linz and Donawitz will go into operation at the start of 2027. Integrating the two green electricity-powered EAFs into steel production makes it possible to electrify energy-intensive processes, thus reducing CO2 emissions by around 30% by 2029 compared to 2019. This corresponds to annual savings of almost 4 million tons of CO2, or nearly 5% of national emissions. That makes greentec steel Austria’s largest climate protection program.
voestalpine CEO Herbert Eibensteiner

greentec steel ushers in the next generation of steel production. We are investing EUR 1.5 billion over the coming years to achieve this. The significance of this project goes far beyond our Group—greentec steel is Austria’s largest climate protection program.

voestalpine CEO Herbert Eibensteiner

Milestones on our path to steel production with net zero CO2 emissions

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Glossary
From Breakthrough technologies to Transformation: This glossary explains the most important terms relating to greentec steel.
Breakthrough technologies

Breakthrough technologies are processes that change our lives or the landscape of an industrial sector, bringing far-reaching consequences. Breakthrough technologies are particularly relevant to the pressing problem of climate change, offering solutions for storing green energy, for example, or the transformation from high to low emission, or even zero emission, technologies.

We are also intensively researching into breakthrough technologies for steel production in order to successively increase the use of green hydrogen in the steel production process over the long term and achieve carbon-neutral steel production by 2050.

Electric arc furnaces

The use of electric arc furnaces as a low carbon alternative to the traditional blast furnace LD route is an essential building block for the future decarbonization of the steel industry. We are planning to reduce our carbon emissions by a third as early as 2030 through the gradual shift to electric arc technology.

In the electric arc furnace hot sponge iron (HBI) rather than coal or coke is used to produce steel. Scrap and liquid pig iron are also added to the mix. HBI and scrap are melted down by an electric arc which reaches temperatures of over 3,000°C. The furnace is tilted to pour out the slag and tap the crude steel.

Energy supply

Green energy is the primary requirement for carbon-neutral steel production. Both for the implementation of a hybrid technology using electric arc furnaces and for a long-term technological transformation based on green hydrogen, it is necessary that electricity from renewable energy is available in sufficient quantities. This will make a major contribution to reducing our CO2 emissions by around 30% from 2027.

Hydrogen & Research Projects

Green hydrogen is seen as a promising future option for almost entirely decarbonizing energy-intensive sectors such as the steel industry. Hydrogen is completely carbon neutral when produced using green electricity, i.e., electricity generated using water, wind or solar power. The production and use of green hydrogen from renewable energy sources is one of the key technologies for reducing CO2 emissions. With our research activities, we are among the key pioneers in being able to produce steel on the basis of green hydrogen in the long term.

The most important research projects include the EU lighthouse project "H2FUTURE" with partners VERBUND, Siemens, Austrian Power Grid, K1-MET and TNO at the Linz site for the production and use of "green" hydrogen on a large industrial scale, as well as the test plant "SuSteel" at the Donawitz site carbon neutral steel production.

Sustainability indices

Companies are increasingly paying attention to sustainability indices. The listings confirm the clear commitment to sustainability and climate protection from independent international sources. Only companies judged to be leaders in their industries according to long-term economic, ecological, and social criteria are included in these stock exchange listings.

We have been listed in the FTSE4Good since 2020 and rated positively in numerous ratings, such as the Carbon Disclosure Project (CDP). Inclusion in the internationally most renowned sustainability indices once again confirms our active contribution to climate and environmental protection as well as in the areas of social responsibility and governance.

Transformation

The technological transition to green production faces the entire European steel industry with major challenges. We are currently in a transformation process from coal-based blast furnace route to steel production using green electricity. The conversion from coal to green electricity is a vital step on the path to climate-neutral steel production.

In the future, we will therefore focus - as part of a hybrid concept at the Linz and Donawitz sites - on the parallel operation of a steel production using green electricity to the coal-based blast furnace route

Our start

into a green future

2019: World’s largest “green” hydrogen pilot facility commences operation
2020: Inclusion in the FTSE4Good Sustainability Index

2021: about

-10%

CO2-savings with

green steel production

2021: Delivery of the first CO2-reduced premium steel
2022: Green Light for climate-friendly steel production in Austria
2023: EUR 1.5 billion for largest climate protection program in Austria
2023: Start of construction for voestalpine greentec steel in Linz & Donawitz
2024: Order decision has been made: Primetals Technologies supplies the EAF for Linz

From 2027

Commissioning

of one electric arc furnace

in both Linz and Donawitz

By 2029

3–4 mio. t

CO2 savings / year

From 2030

Replacement

of another blast furnace

in both Linz and Donawitz

By 2050

Net-Zero-CO2

emissions from steel production

Further information

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