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At Ovako we have a current focus on why we never actually talk about “green steel”. But instead, we always ground our sustainability claims in hard facts. You can read an article on the subject by Vendela Stenius, Ovako’s Sustainability and Communications Specialist, down below. To provide some further background, we decided to use this issue of Strength of Steel to outline the five key sustainability questions you should ask your steel supplier.

What steps are you taking to reduce the burning of fossil fuels?

Throughout history, burning fossil fuels, such as to heat steel before rolling, has been an integral part of the production process. And of course, the resulting CO₂ emissions are a very significant element in steel’s carbon footprint.

As far back as the 1990s, Ovako started the conversion to oxyfuel burners to reduce energy consumption. This has been a vital stepping stone for introducing fossil-free hydrogen instead of fossil fuels

In September 2023, the world's first plant for fossil-free hydrogen for heating steel before rolling was inaugurated at our Hofors plant. The emissions from the rolling mill have been reduced to almost zero. As well as being the first electrolysis plant in the world at a steelworks, it’s also Sweden’s largest electrolysis plant, being rated at 20 MW and able to generate 3,880 cubic meters of hydrogen per hour. Ultimately, we plan to convert the steel heating furnaces at all our rolling mills to fossil-free energy sources.

Below is a 4-minute video showcasing the construction of the hydrogen plant. Hear from some of the masterminds behind the project:

Are you using fossil-free electricity?

The steel industry is a heavy user of electricity, especially in electric arc furnaces (EAFs). Switching from electricity generated by burning fossil-fuels to renewable energy from hydropower, wind or solar sources can enable a tremendous reduction in carbon emissions.

This is why Ovako uses 100% fossil-free electricity in our steel and rolling mills. This fossil-free electricity mix is contracted with our electricity supplier, resulting in close to zero emissions from purchased electricity according to market-based Scope 2 accounting.

How do you power your heat treatment processes?

Heat treatment to achieve the desired properties of the steel product is a vital step. But, the furnaces, normally fuelled by gas, produce CO₂ emissions. Converting them to electric heating is another important step to a carbon neutral steel industry.

At Ovako we have adopted a major initiative to convert our heat treatment furnaces to electricity. And now 90% of the heat treatment we carry out is with electric power.

Have you optimized your use of recycled content?

Steel is the world’s most recycled material and can be remelted again and again without affecting its properties. It takes much less energy to recycle existing materials than it does to process virgin raw materials, so reusing existing resources is a good way to reduce CO₂ emissions – especially in steelmaking where it is possible to reduce emissions by over 80% using scrap-based processes.

Estimates suggest that by volume, scrap will account for 50% of the global iron content in steel by 2030, up from 35% today. Yet at Ovako, our steel already today contains 97% recycled content, making our products almost completely circular.

Do you consider all three Scopes in your carbon footprint calculations?

To gain a full picture of the carbon footprint of a steel product there are three Scopes that must be considered. Scope 1 emissions are the greenhouse gases that an organization emits from sources it owns or controls directly. Scope 2 emissions are indirect, deriving from an organization’s purchase of electricity, steam, heat, or cooling. Scope 3 emissions encompass  indirect emissions from feedstock material, energy and similar used in steel production.

Because Scopes 1 and 2 are relatively easy to calculate, that is where some steel suppliers stop. However, Ovako is committed to providing Scope 3 information on the products we deliver as well.

This is illustrated by our Carbon Calculator tool that builds upon our Environmental Product Declarations (EPD®). These are verified and registered documents that provide transparent and comparable information about the environmental impact of products over their life cycle. In the Carbon Calculator, we combine data from our EPDs with activity data for all our different process routes and steel grades, enabling us to provide article specific carbon footprint calculations on all product deliveries.   

This information helps our customers to make accurate carbon footprint calculations on their products, and informed decisions about their steel purchases.

We know that customers can find it difficult to obtain accurate and comparable CO₂e figures from their steel suppliers. But if all the points outlined above are "checked," you can be  confident that the steel supplier's emissions will be low compared to the industry average.

The Imatra mill has cut CO2 emissions by 55% since 2015. Roadmaps target 80% reduction by 2030 and 90% by 2040. Key efforts include fossil-free electricity and hydrogen plans for steel heating, though achieving full supply chain reductions will be challenging.

Please invite any of your colleagues/networks to join us as we look forward to bringing you news of interesting aspects of the steel business world.

Stay tuned for more exciting updates as we continue to shape the future of steel and redefine what's possible.

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