Saudi Arabia’s iron and steel industry is well-positioned for green transition – Minister of Investment

Saudi Arabia’s iron and steel industry is well-positioned for green transition – Minister of Investment

Saudi Arabia’s iron and steel industry is well-positioned to accelerate transition to green and sustainable production thanks to technology choices, availability of low-cost electricity and natural gas and government programmes like the Saudi Green Initiative, the Minister of Investment Khalid Al-Falih said.

He said Direct Reduced Iron (DRI) and Electric Arc Furnace (EAF) accounts for 100 percent of the steel produced in the Kingdom compared to 28 percent globally, adding that carbon dioxide emissions of the Kingdom’s iron and steel plants are 60 percent lower than global average due to the use of natural gas and electricity instead of coal in the production processes.

Speaking at the Second Saudi International Iron and Steel Conference in Riyadh on Tuesday, he pointed out that the global iron and steel industry, which accounts for about 24 percent of direct industrial CO2 emissions, is under pressure to decarbonise from both the producing countries and the consuming countries seeking green steel imports.

He said the carbon abatement cost is expected to increase to $180 per tonne in 2050 compared to about $30 per tonne in 2020, which will drive a major shift in steel making technologies with the share of carbon-intensive technologies such as coal-based furnaces dropping to