Beyond technology: Systemic dependencies in the decarbonisation of the steel industry
Abstract
The transition of the steel sector, e.g. related to decarbonisation, depends less on new technologies than on systemic coordination between energy supply, industrial infrastructure, and policy frameworks. Emerging technologies have not been systematically evaluated, something this paper aims to address by combining literature evidence with semi-structured interviews. The study identifies environmental hotspots, evaluates industry ambitions and barriers, and reviews how assessment methods are applied. Hydrogen-based direct reduction offers the greatest long-term emission reductions but demands vast renewable electricity capacity and extensive infrastructural transformation, making its large-scale adoption feasible mainly in regions such as Sweden. Scrap-based electric-arc furnace routes deliver immediate gains yet remain constrained by scrap quality, availability, and electricity mix, while carbon capture and storage serve only as a temporary bridging option. Economic costs and uneven regional energy access continue to limit transition speed across Europe. Current life cycle assessments increasingly focus on prospective, carbon-centred indicators, overlooking broader environmental dimensions such as toxicity and resource depletion. Integrated life cycle assessment, material flow analysis, and techno-economic modelling provide a more comprehensive understanding of these interlinked constraints. The study concludes that sustainable steelmaking requires systemic coordination rather than isolated technological optimisation.