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Secondary steel producers in South Africa are said to be making a significant contribution to the country's steel production output.
That is according to Amit Saini, a director at Coega Steels, based in the Coega Special Economic Zone in the Eastern Cape.
According to Saini, producers using traditional coal-fired blast furnaces churned out 2.59-million tons of steel last year, while so-called mini-mills, where steel is made from scrap metal, produced approximately 2.11-million tons over the same period.
He noted further that so-called “mini mills” emit roughly four to five times less carbon than primary steel producers.
Saini said the manufacture of so-called 'green steel' had gained greater prominence, as industries embraced sustainable practices to mitigate environmental impacts.
“This shift is driven by increasing regulatory pressures, consumer demand for eco-friendly products and international commitments to reduce carbon emissions under pacts such as the legally binding Paris Agreement on climate change,” Saini said.
“Steelmaking through scrap recycling is the leading and foremost method of green steel production. Recycling scrap metal significantly cuts carbon emissions compared to traditional methods.
“India has already established itself as a global leader in the green-steel sector,” he added.
Saini said in terms of new guidelines released by the South Asian nation, steel with a carbon footprint of less than 1.6 ton of carbon dioxide equivalent (CO2e) per ton of finished steel, is defined as five-star green steel.
“That with emissions of 1.6 to 2.0 tons is rated four-star while 2.0 to 2.2 gets a three-star rating.
Saini said this landmark policy underscored the importance of setting clear guidelines to promote green steel, with the many US and European countries implementing stringent green-steel standards.
“These developments highlight the competitive advantage of green steel, which is sold at a premium in international markets due to its lower environmental impact,” he said.