China Makes Room for Hydrogen

Non-profit think tank Transition Asia has published research mapping the current status of hydrogen-based direct reduced iron (H2-DRI) projects across China, and covering ongoing challenges around the incorporation of electric arc furnaces (EAFs). The research noted that although China has installed a number of H2-DRI projects across northern provinces, most of the hydrogen they use originates from either coke ovens or natural gas. China’s operational scale grants steelmakers significant leeway for transitioning to new technologies, including EAFs, the report mentioned. Transition Asia has called on Chinese policymakers to set top-down targets for EAF-based steel production to encourage the required technological shift. Although the goal is for 20% of China’s steel production to be EAF-based by 2030, that figure currently stands at 15%. “Chinese policymakers’ commitment to a clear roadmap for H2-DRI-EAF technology is pivotal for the country to establish itself as a leader in low-carbon steel production,” said Lauren Huleatt, Programme Manager and Investor Lead at Transition Asia. “The transformative potential of H2-DRI-EAF-based steel, with its near-zero emission capabilities, presents a necessary technological pathway to decarbonise the iron and steel industry.”

The practical information hub for asset owners looking to invest successfully and sustainably for the long term. As best practice evolves, we will share the news, insights and data to guide asset owners on their individual journey to ESG integration.

Copyright © 2024 ESG Investor Ltd. Company No. 12893343. ESG Investor Ltd, Fox Court, 14 Grays Inn Road, London, WC1X 8HN

To Top