Published by Todd Bush on June 9, 2023
LONDON, June 8, 2023 /PRNewswire/ -- Fastmarkets, an industry-leading cross-commodity price reporting agency (PRA), will today (June 8) launch a new suite of green steel prices.
Green steel, also known as low-carbon emission or sustainable steel, refers to the production of steel using environmentally friendly and energy-efficient processes that minimize carbon dioxide (CO2) emissions. Traditional steel production methods, such as the blast furnace route, are highly carbon-intensive and contribute significantly to global greenhouse gas emissions.
>> In Other News: Spearmint Energy Secures $200 Million Term Loan for BESS Storage Portfolio Development
Our new green steel benchmarks will assess the price differential against traditional flat steel prices, creating transparency for the industry and supporting the investment decisions needed to reduce emissions.
These prices are a world first and serve an important need – demand for sustainable steel continues to grow.
The decarbonization of Europe's steel industry is being driven by the EU's emissions trading system (ETS), as well as growing demand among downstream sectors including the automotive industry.
Steelmaking accounts for 7-9% of global CO2 emissions, the majority of which come from coal-based blast furnaces. Most steel produced from traditional blast furnaces emits around two tonnes or more of CO2 for each tonne of steel produced.
Many steelmakers have announced large investments to replace their blast furnaces with scrap-based electric-arc furnaces (EAFs) and a shift to hydrogen-reduced iron plants.
Fastmarkets' green steel, domestic flat-rolled differential ex works Northern Europe will be assessed weekly against the established Fastmarkets Northern European hot rolled coil (HRC) index.
A daily inferred green steel base price will also be calculated based on the Fastmarkets HRC index and the green steel differential to provide real-time transparency.
The green steel prices will capture the differential between traditional flat-rolled steel prices and prices for steel produced with emissions (including scopes 1, 2 & 3) of maximum 1 tonne CO2 per tonne of steel.
All production methods and raw-materials will be considered, including scrap-based production and steel made from hydrogen-reduced iron.
In parallel, Fastmarkets has continued to develop its price series for high-grade iron ore, metallics and ferrous scrap.
Andrew Wells, Global Steel & Ferro-alloys Editor at Fastmarkets, said: "Following extensive research and discussions across the industry, we are well-placed to bring clarity and transparency to a market that is fast becoming a priority area for all steel industry players committed to the energy transition. Steel made with significantly reduced CO2 emissions is widely expected to account for 30% of the European market by 2030."
Raju Daswani, CEO of Fastmarkets, added: "The transition to green steel production is a significant step towards achieving carbon neutrality and addressing climate change. It aligns with global efforts to reduce greenhouse gas emissions and build a more sustainable and low-carbon economy. We are excited to work with the industry on its decarbonization journey and help define, measure and communicate green standards and prices to support this transition."
Fastmarkets is an industry-leading price reporting agency (PRA) and information provider for global commodities, providing price data, news, analytics and events for the agriculture, forest products, metals and mining, and new generation energy markets. Fastmarkets' data is critical for customers seeking to understand and predict dynamic, sometimes opaque markets, enabling trading and risk management. Fastmarkets is a global business with a 130-year history built on trust and deep market knowledge. It has more than 500 employees spread across global locations in the UK, US, China, Singapore, Brazil, Belgium and Finland.
SOURCE Fastmarkets
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.
Inside This Issue ⚡ Energy Department Removes Barriers for American Energy Producers, Unleashing Investment in Domestic Hydrogen 🛳️ MASH Makes Powers First Vessel Trial With Biofuel From a Carbon-...
Inside This Issue 🛢️ Conestoga Energy Completes Drilling of Class VI Carbon Capture & Sequestration Well, Advances Toward EPA Application 🏗️ How Microsoft and Sublime Systems Are Reinventing C...
Inside This Issue 💸 EDF Slams Repeal of 45V Hydrogen Credit, Citing $32Bn in Higher Household Energy Costs and Job Losses 🤝 Johnson Matthey to Sell Blue Hydrogen Business to Honeywell as Part of £...
The U.S. Department of Energy’s (DOE) Hydrogen and Fuel Cell Technologies Office today removed barriers for the American hydrogen industry by updating its 45VH2-GREET modeling tool. The latest vers...
NETL Patents New Process for Extracting Critical Resources from Coal Fly Ash at High Quantities
NETL researchers developed a new process for extracting economically and strategically vital rare earth elements (REE) and critical minerals (CM) from America’s coal fly ash at high quantities and ...
World’s First Plant That Captures CO2 From Air to Make Building Materials Opens
Aggregates produced using CO2 captured by Mission Zero Technologies ‘Direct Air Capture’ technology (Image courtesy of Mission Zero Technologies) A demonstration project that uses direct air captu...
Plug Power’s Georgia Hydrogen Plant Sets U.S. Production Record Using Plug Electrolyzer Technology
April 2025 Marks Industry-Leading Milestone with 300 Metric Tons of Liquid Hydrogen Produced WOODBINE, Ga., -- Plug Power Inc. (NASDAQ: PLUG), a global leader in comprehensive hydrogen solutions, ...
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.