H2 Green Steel, which pioneers new green production methods for steel manufacturing, has announced that it has secured more than one million tonnes worth of orders, with a sizable proportion coming from its early stage investor and partner Kingspan.
This commercial milestone marks the start of the green steel revolution and has already catalysed the industry to invest in developing low carbon steel products.
By the time the product begins to fulfil orders in 2025, it is anticipated that H2 Green Steel will supply an important proportion of Kingspan’s steel requirements, supplemented by other low-carbon options from Kingspan’s global steel supply partners. Kingspan’s global order volume is in excess of one million tonnes annually, with the majority in Europe.
By 2030, H2 Green Steel will have annual production capacity of five million tonnes of high-quality steel, with one of the lowest emissions plans compared to products currently on the market or in development due to its hydrogen-powered process and access to 100% renewable energy.
This will be critical for Kingspan meeting the commitments outlined in its 10-year sustainability programme, Planet Passionate. In addition to reducing carbon emissions in its own operations, Kingspan is targeting a 50% reduction in product CO2e intensity from its primary supply partners by 2030, and to reduce its manufacturing carbon emissions to as close to zero as technically possible. Many of its other key suppliers – including SSAB, thyssenkrupp, and ArcelorMittal – have announced plans to transition to low carbon steel by 2030.
Kingspan is committed to finding lower carbon alternatives for its raw materials. Green steel and low carbon steel are crucial for decarbonising Kingspan’s supply chain, since 79% of Kingspan’s scope 3 emissions are attributable to raw materials.
H2 Green Steel aims to be producing steel in 2025 with 95% less carbon than comparable steel today. Using only H2 Green Steel products in the future could see Kingspan reduce the embodied carbon in its insulated panel products by over 45%. It would also make a substantial contribution towards Kingspan’s Planet Passionate goals by delivering up to a 35% reduction in the Group’s scope 3 emissions.
The building and infrastructure sectors are the biggest users of steel, accounting for 52% of global demand. Steel accounts for 7% of emissions emitted globally. Kingspan was one of the first companies to make a long-term commitment to H2 Green Steel.
Mark Broderick, Procurement Director at Kingspan, said:
H2 Green Steel hitting this milestone shows that the world is waking up to green steel. The company’s hydrogen-based manufacturing process has accelerated the progress of the steel industry globally in creating low carbon options, showing how cutting-edge technologies can spark the transition to greener built economies.
Kingspan is committed to reducing its operational emissions as well as the carbon embodied in its products. From January 2023, Kingspan will implement an internal carbon charge, starting at 70€/tCO₂e, to be adjusted as required to meet its targets.