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Global warming and climate change are among the most critical environmental challenges of our time. One of the main causes of this phenomenon is the rapid increase in greenhouse gas emissions since the Industrial Revolution. Gases such as carbon dioxide, methane, and nitrous oxide accumulate in the atmosphere, disrupting the Earth’s energy balance and leading to rising global temperatures.
The steel industry, with its energy intensive production processes, plays a significant role in greenhouse gas emissions. Today, steel manufacturers are determined to change this outlook by adopting environmentally and economically sustainable production models. Innovative companies such as Hasçelik contribute to emission reduction through technological investments, shaping the future of steel within a more sustainable, efficient, and responsible framework.
Greenhouse gases are gases that accumulate in the atmosphere and trap heat from the sun. The most well known of these are carbon dioxide (CO₂), methane (CH₄), and nitrous oxide (N₂O).
Steel production releases substantial amounts of CO₂, particularly during ore reduction, high temperature smelting, and energy use. As a result, the steel industry’s carbon footprint constitutes a significant share of global greenhouse gas emissions.
Steelmaking is a multi stage and energy intensive process, and each stage can lead to different types of greenhouse gas emissions.
Blast Furnace Processes
In traditional production, carbon (in the form of coke) is used to reduce iron ore. During this process, iron oxide reacts with carbon, releasing CO₂. This is the largest source of direct emissions in steel production.
Electric Arc Furnaces (EAF)
These systems, which use scrap steel as raw material, generate much lower direct carbon emissions. However, if the electricity used comes from fossil fuels, indirect emissions can still be significant.
Auxiliary Processes and Logistics
Supporting operations such as raw material transportation, heating systems, and waste management also contribute to greenhouse gas emissions. Therefore, a sustainable production model must address the entire supply chain.
Today, steel manufacturers are investing in environmentally friendly production processes to move toward carbon neutral industry goals. At the core of this transformation embraced by Hasçelik are technological innovation, energy efficiency, and digitalization.
Hydrogen Based Steel Production
While conventional production methods rely on carbon, hydrogen based production uses hydrogen as the reducing agent. As a result, water vapor (H₂O) is released instead of CO₂. This approach is considered one of the most significant steps toward the era of “green steel.”
Carbon Capture, Utilization, and Storage (CCUS)
These technologies capture CO₂ generated during production for storage or reuse in chemical processes. This reduces direct emissions and enables carbon to be reintegrated into the circular economy.
Energy Recovery and Digital Monitoring
Waste heat recovery systems allow thermal energy to be reused, while digital monitoring technologies optimize energy consumption and enhance production efficiency.
The European Union’s Green Deal aims to achieve a carbon neutral economy by 2050. In line with this target, the introduction of the Carbon Border Adjustment Mechanism (CBAM) marks a new era for steel exporters.
Steel producers must now compete not only in product quality but also in carbon performance. Environmentally conscious manufacturers such as Hasçelik are already adapting to this process through energy efficient production systems and low carbon supply chains.
Recycling is one of the most effective strategies for reducing greenhouse gas emissions. Producing steel from scrap requires 60–70% less energy compared to production from virgin ore. This directly reduces CO₂ emissions and increases resource efficiency.
The circular economy approach ensures sustainability in the relationship between production, consumption, and recycling. In line with this philosophy, Hasçelik continuously improves its production processes, maintaining a balance between resource conservation and environmentally responsible manufacturing.
Another crucial step in reducing greenhouse gas emissions is the transition of energy sources.
Production facilities powered by renewable sources such as solar, wind, and biomass significantly reduce their carbon footprint.
Hasçelik is developing production systems integrated with green energy infrastructure to increase energy efficiency and minimize environmental impact. This approach also supports long term economic efficiency.
One of the most important steps in the sustainability journey is the accurate implementation of measurement and reporting processes. Steel producers regularly monitor their greenhouse gas emissions by applying international standards such as ISO 14064 and the GHG Protocol.
Through these systems, environmental impacts are quantified, and performance indicators are defined.
Hasçelik conducts these processes with transparency, making environmental responsibility a core part of its corporate culture.
Investments in emission reduction also deliver financial returns. Energy efficiency projects reduce operational costs in the short term, while renewable energy integration and EAF transitions provide long term protection against price volatility.
Low carbon products have a higher potential for preference within global supply chains. Customers and large manufacturers increasingly use carbon performance as a criterion when selecting suppliers.
The key factors accelerating investment returns include energy savings, lower raw material costs (via scrap utilization), government incentives, and revenue opportunities from carbon markets. This economic rationale demonstrates that sustainability is not merely a responsibility it is a strategic opportunity.
A successful emission reduction program is managed through measurable goals and performance indicators. Recommended KPIs include:
• Ton CO₂ / ton steel (carbon intensity) annual reduction target: 5–10%.
• Scrap ratio (%) target: percentage increase by 2030.
• Share of renewable electricity (%) phased milestones for 2025, 2030, and 2040.
• Energy consumption (GJ / ton) process based reduction plan.
Example initiatives for quick wins at the plant level include waste heat recovery, furnace insulation improvements, process automation, and scrap classification investments.
In the medium and long term, pilot projects for H₂ DRI (Hydrogen Direct Reduced Iron), EAF capacity expansion, and CCUS deployment should be implemented.
Reducing Scope 3 emissions requires close coordination with the supplier ecosystem. Manufacturers must establish contractual commitments on carbon targets with raw material suppliers, logistics partners, and energy providers.
Through industry consortia and public–private partnerships, the scaling of green hydrogen infrastructure and CCUS projects can be accelerated.
Accelerated Roadmap
• 2025: Completion of energy efficiency and data infrastructure; renewable energy pilot projects.
• 2030: Increased scrap utilization; pilot hybrid EAF/H₂ DRI plants; initial 25–30% improvement in KPIs.
• 2040: Production primarily based on H₂ DRI and EAF; commercial deployment of CCUS.
• 2050: Near net zero production profiles across the sector; low carbon steel becomes the industry standard.
Reducing greenhouse gas emissions is one of the most decisive actions shaping the future of the industrial sector. The steel industry is moving confidently toward a carbon neutral future through energy efficiency, recycling, renewable energy adoption, and innovative reduction technologies.
Led by innovative manufacturers such as Hasçelik, this transformation safeguards both the environment and industrial competitiveness. Each strategic investment plays a vital role in building a cleaner, more resilient production landscape for the future.
