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The Impact of Recycled Steel on Decarbonisation

The UK steel industry is undergoing a vital and permanent transition to sustainable methods of production, fuelled by the ever-looming climate crisis and the Paris Agreement targets for 2030.

A crucial aspect of this shift is the integration of recycled steel in the steelmaking process, an approach which not only reduces environmental impact, but also has economic benefits and contributes to industry longevity.

Unlike many other materials, steel does not lose its inherent properties no matter how many times it is recycled 1, and this unique characteristic makes recycled steel a critical component in the UK steel industry’s decarbonisation. Steel recycling involves the recovery and processing of scrap steel into new steel products and takes place in three main stages:

    1.) Collection and Sorting: Scrap steel is collected from various resources and sorted using a combination of manual and automated processes, including magnetic separation and advanced sensor-based technologies, to ensure purity and grade specifications are met.

    2.) Melting: The sorted scrap is then melted in a furnace, either an Electric Arc Furnace (EAF) or Basic Oxygen Furnace (BOF). EAFs, which are most commonly used for recycled steel, melt scrap using high-voltage electric arcs, while BOFs mainly convert iron ore into steel but can also use a percentage of scrap steel.

    3.) Formation into New Steel Products: Once melted, the steel is cast into various forms, i.e. slab, billets, or blooms, and then further processed through rolling, forging or pressing to produce a wide range of steel products.


What Are the Environmental Benefits of Using Recycled Steel?
One of the main benefits of recycling steel is the significant reduction of carbon dioxide emissions. Producing steel from recycled materials requires much less energy than producing it from iron ore, and more specifically, reduces CO2 emissions by about 58% 2, as the sustainable route bypasses the energy-intensive steps of mining, transporting and processing raw materials.

The process of melting and reforming recycled steel in EAFs is also considerably more energy-efficient than traditional blast furnace methods. It is estimated that recycling steel saves up to 72% of the energy that it takes to produce steel from iron ore 3. Additionally, recycling steel plays a major role in conserving finite natural resources. For every tonne of steel recycled, 1.4 tonnes of iron ore, 0.8 tonnes of coal and 0.3 tonnes of limestone are preserved 2. Steel recycling also contributes towards water conservation, as the process requires significantly less water than producing steel from raw materials.

Challenges For Recycling Steel in the UK
While there are clearly many advantages to using recycled scrap steel in steel production, the UK currently exports a high percentage of its domestic scrap to other countries. UK Steel, the trade association for the UK steel industry, has highlighted this issue consistently, noting that the UK produces more than 10 million tonnes of scrap a year, but exports over 80% of it 4.

At present, the UK’s scrap consumption is only about 25% annually, but this number is expected to rise to 70% as early as 2027, and even treble by 2050 5. Sixty percent of the UK’s scrap exports are sent to countries with lower environmental standards, while an additional 1.5 million tonnes of CO2 are generated each year from exporting scrap and re-importing finished steel products 5. UK Steel has urged policymakers to incentivise domestic use of scrap, by supporting innovations in scrap processing to improve its quality and by removing VAT on high quality scrap.

By obtaining a balance in the current export-heavy trade system, improving the capabilities of UK recycling facilities and developing the scrap sector further, the steel industry’s transition to decarbonisation can be facilitated, with benefits for steelmakers, recyclers and consumers alike.

Author: Shirley Carruthers - Content Creator at ParkerSteel

References:
Springer Article
The Value of Recycling Metals
Metal Recycling Factsheet
UK Steel Sector Calls for Action
UK Steel Market Report

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First published on 27/02/24

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