IN SUMMARY
Why Indonesia's steel industry must decarbonise, and how
Why Indonesia's steel industry must decarbonise, and how
Steel underpins almost every sector, but making it is responsible for 7 to 9% of global greenhouse gas emissions. In Indonesia, where the industry has grown around 21% a year since 2013, roughly 80% of production still uses the blast furnace–basic oxygen furnace (BF-BOF) route, one of the most carbon-intensive ways to make steel. With the EU's Carbon Border Adjustment Mechanism and offtakers such as data centres and automakers demanding lower-carbon steel, Minviro carried out a life cycle assessment of Indonesian hot-rolled coil to quantify its footprint, find the hotspots, and set out the decarbonisation options.
Steel underpins almost every sector, but making it is responsible for 7 to 9% of global greenhouse gas emissions. In Indonesia, where the industry has grown around 21% a year since 2013, roughly 80% of production still uses the blast furnace–basic oxygen furnace (BF-BOF) route, one of the most carbon-intensive ways to make steel. With the EU's Carbon Border Adjustment Mechanism and offtakers such as data centres and automakers demanding lower-carbon steel, Minviro carried out a life cycle assessment of Indonesian hot-rolled coil to quantify its footprint, find the hotspots, and set out the decarbonisation options.
Steel underpins almost every sector, but making it is responsible for 7 to 9% of global greenhouse gas emissions. In Indonesia, where the industry has grown around 21% a year since 2013, roughly 80% of production still uses the blast furnace–basic oxygen furnace (BF-BOF) route, one of the most carbon-intensive ways to make steel. With the EU's Carbon Border Adjustment Mechanism and offtakers such as data centres and automakers demanding lower-carbon steel, Minviro carried out a life cycle assessment of Indonesian hot-rolled coil to quantify its footprint, find the hotspots, and set out the decarbonisation options.
Indonesian hot-rolled coil emits 2.2 kg CO₂e per kg. The blast furnace and basic oxygen furnace stages together account for more than half the total climate change impact.
Indonesian hot-rolled coil emits 2.2 kg CO₂e per kg. The blast furnace and basic oxygen furnace stages together account for more than half the total climate change impact.
Indonesian hot-rolled coil emits 2.2 kg CO₂e per kg. The blast furnace and basic oxygen furnace stages together account for more than half the total climate change impact.
Direct emissions are the dominant hotspot. Direct CO₂ from the blast furnace, converter, sintering and coke oven makes up 54% of the footprint, with energy use adding around 22% and quicklime 12%.
Direct emissions are the dominant hotspot. Direct CO₂ from the blast furnace, converter, sintering and coke oven makes up 54% of the footprint, with energy use adding around 22% and quicklime 12%.
Direct emissions are the dominant hotspot. Direct CO₂ from the blast furnace, converter, sintering and coke oven makes up 54% of the footprint, with energy use adding around 22% and quicklime 12%.
Process gases provide a large credit. Treating blast furnace and converter gases at the power plant, plus coke oven gas, delivers a combined credit of around -1.4 kg CO₂e per kg, materially lowering the net figure.
Process gases provide a large credit. Treating blast furnace and converter gases at the power plant, plus coke oven gas, delivers a combined credit of around -1.4 kg CO₂e per kg, materially lowering the net figure.
Process gases provide a large credit. Treating blast furnace and converter gases at the power plant, plus coke oven gas, delivers a combined credit of around -1.4 kg CO₂e per kg, materially lowering the net figure.
