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Green Steel to manage increasing electricity prices

Increasing electricity prices cause an increase in electricity prices and therefore, a reduction in the production process of multiple steelmakers. But "Green Steel", or fossil free steel, is proposing a solution to the global greenhouse gas emissions with Volvo using the world's first green steel, starting its trial runs this year.

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Many industries have announced to reduce or even stop their production since it is cheaper to do so than to continue producing at the current market prices. The global steel industry sees decarbonization and the use of green steel as a way out of the current disruption in the power market.


The steel making industry is responsible for 7% of all global greenhouse gas emissions. This can be reduced by replacing the used fossil fuel based energy by hydrogen. In Sweden, the world's first "green steel" will be used by Volvo, in prototype vehicles and components. This type of green steel is produced without using coal nor coke, replacing these with renewable electricity and hydrogen. However, the high costs of hydrogen production and the low degree of efficiency are still barriers for a broader commercial use of this technology.