Engineering the future of steel: It’s not if, but how we transition to low-carbon production

Steelmaking is evolving – but what does it take to decarbonize one of the world’s most energy-intensive industries? In this article ABB's Frederik Esterhuizen and Scott McKay explore how intelligent energy systems, hydrogen ironmaking and integrated technologies are enabling steelmakers to move from ambition to action on the journey to sustainable steel.

This article was originally published in the September 2025 issue of Chemical Engineering Magazine.

Can you describe some of the “green steel” projects that ABB has been working on and what role does ABB play in these projects?

When discussions turn to any so-called green projects, it is important to take a step back and see the bigger picture. At ABB, we believe the transition to a lower carbon and more diverse energy ecosystem is not a question of if, but how. These ‘hows’ can take many forms, including hydrogen, an enabler of real progress as the world moves to a low-carbon economy.
Frederik-Esterhuizen

Frederik Esterhuizen, Global Business Line Manager for Metals & Power Conversion at ABB Process Industries

Scott-McKay

Scott McKay, Hub Americas Manager at ABB Energy Industries

There is no feasible projected future where the steelmaking industry and hydrogen do not go hand in hand. Steel – one of the world’s most carbon-intensive industries – stands as a powerful proving ground for the energy transition. Hydrogen has and will continue to replace traditional coking coal in blast furnaces through direct reduced iron (DRI), producing iron sponge pellets that can then be used in all types of furnace, including the electric arc furnace. Overall, this is a process that is much less energy intensive and with less harmful byproducts or gases.

A notable example of our wider energy supply chain work is in North America, where we are collaborating with Charbone Hydrogen to advance modular and scalable green hydrogen production facilities. These will be used as a clean fuel source for a range of heavy industrial processes, like steelmaking which currently uses natural gas-derived grey hydrogen.

Our collaboration is focused on the company’s flagship Sorel-Tracy facility near Montreal, and this will create a blueprint for the design and engineering of equipment for other sites being developed. The next Charbone project to get underway will be in the greater Detroit area of the US, which is a major manufacturing base for automotive companies.

Of course, green steel production is gaining momentum, but it will not happen overnight. One overarching way in which ABB supports and readies itself for its advancement is to integrate our automation, electrification and digitalization solutions into processes.

The Hydrogen Breakthrough Ironmaking Technology (HYBRIT) project, piloted in Sweden by steelmaker SSAB, state-owned iron ore miner LKAB, and state-owned energy company Vattenfall, aims to make steel using green hydrogen and fossil-free electricity using the high grade iron ore from the LKAB mines instead of coking coals. Here, we are supplying a full electrification and automation package for the pilot plant, which is set to start production in 2026.

One notable project is our work with GreenIron – a Swedish pioneer for fossil-free metal production. It selected ABB to provide automation and control systems solutions for a first commercial facility in Sandviken. GreenIron’s hydrogen-based reduction technology is being industrialized for fossil-free and energy-efficient production of metals, producing fossil-free sponge iron that can then be used in steel or other metal fabrication processes.

In the UK, we recently won multiple orders with Tata Steel, one as part of a consortium with steel processing lines and mills supplier Clecim, where automation, electrification and digital technology will be key to achieving safe, efficient and optimized operations for a new pickle line at Port Talbot steelworks. In another, we’re supporting the global steelmaker’s decarbonization efforts through a comprehensive electrical power distribution scope combined with delivery of our ArcSave® electromagnetic stirring (EMS) technology for electric arc furnace, with this portion in partnership with Tenova, a leading developer and provider of sustainable solutions for the green transition of the metals industry. Tata Steel plans to start up the new 3.2-million-ton capacity EAF and produce first steel in 2028.
Charbone-Hydrogen
ABB is supporting Charbone Hydrogen with modular electrification and automation to help provide green hydrogen to steel and other industries in North America

What are some of the technologies being explored to help decarbonize steelmaking?

ABB’s automation and electrification solutions include distributed control systems (DCS, including the flagship ABB Ability™ System 800xA®), rectifiers (including high power rectifiers (HPR) used in the production of green hydrogen through water electrolysis, for example), electromagnetic stirrers (EMS), power management, instrumentation, transformers and motors – all of which are all crucial components that enable reliable green steel production.

EAFs require a substantial, stable electricity supply and this demands robust grid infrastructure. ABB supports steelmakers in this area in many ways but through energy-efficient motors, process optimization software and electromagnetic stirring solutions we can enhance EAF efficiency and reduce energy consumption, easing that pressure on the system. Our ABB Ability™ Energy Management System helps stabilize operations in regions with grid reliability concerns, ensuring uninterrupted EAF performance. In one European example, the solution covered steam yield, by-product gases, energy purchase and production, including site plants and turbines and resulted in 10 percent less flaring of gases, 15 percent improvement in accuracy of electricity purchasing forecasts and an average saving of 15KEUR per month.

Another such technology example in energy management is ABB Ability™ OPTIMAX®, which enables reduction of power costs – often the biggest operational expense – by intelligently balancing supply and demand in real time. Generative AI is also critical for the path ahead and we’re harnessing it through ABB Ability™ Genix Copilot. The solution helps energy, utilities and other industries improve efficiency, productivity and sustainability by contextualizing vast amounts of data from plant operations to provide actionable insights. Digital solutions like these are not only speeding up decarbonization of the sector but boosting the global competitiveness of steelmakers.

Staying with digital solutions, JSW Steel's Dolvi Works plant in India is just one of the examples of businesses reaping the rewards. ABB Ability™ Smart Melt Shop, a comprehensive solution that leverages data from sensors and process equipment, has boosted productivity by up to 24,000 tonnes annually at the site and cut energy costs by around $250,000. This intelligent system optimizes crane and ladle tracking, leading to faster casting speeds and reduced arcing in the ladle furnace.
Green-Iron
ABB automation and control systems are enabling scale-up of fossil-free sponge iron using Swedish GreenIron’s hydrogen-based reduction technology.

Why is the steel industry a good fit for deployment of decarbonization technologies?

Current steel production is carbon and energy intensive and classified as one of the six ‘hard to abate’ sectors. Globally, the steel industry is responsible for an estimated 8 percent of the world’s energy demand and generates between 7 percent to 9 percent of CO₂ emissions – most of which are from burning fossil fuels, according to various sources including the recent International Energy Agency (IEA) Iron and Steel Technology Roadmap.

It’s because of this sheer energy intensity that reliable scale-up of technologies is crucial for the global transition. Steel plants operate with consistently high-load energy demands, which makes them ideal for integration of technologies like hydrogen power and electrified heating.

At the same time, the steel industry offers multiple integration points for the digital solutions that will accelerate decarbonization ambitions. From real-time optimization to predictive maintenance, there’s a wealth of opportunity to extract more efficiency from every step of the process. And with growing regulatory and societal pressure to decarbonize, many producers are actively looking for solutions that go beyond incremental improvements.

As we often say, the greenest unit of electricity is the one that isn’t used. Even modest efficiency gains – five percent here, 10 percent there – can have enormous impact when applied across large-scale steel operations

Is ABB also working on projects where decarbonization technologies are being applied in other metals or construction materials manufacturing sectors?

Decarbonization is not exclusive to steel, and the principles of electrification, optimization and digital control apply across many emissions-intensive industries. In operations across the complete steel, aluminum and other metals value chain, along with cement and chemical production, we’re helping customers move towards low-carbon operations without compromising on safety, performance or profitability.

One example of a technology partnership across all of these industries is that with transformational technology and engineering company Coolbrook. The two companies collaborated in the petrochemicals market to accelerate the adoption of Coolbrook’s RotoDynamic Reactor (RDR) technology to reduce greenhouse gas emissions in steam cracking plants. Together they created a combined offering to reduce energy consumption by 30 percent and improve yield by 20 percent in ethylene production. Across cement and steel, Coolbrook’s RotoDynamic Heater (RDH) technology has potential to replace the burning of fossil fuels with high temperature electric heating to reduce carbon dioxide emissions and increase process efficiency. ABB’s role is in automation, electrification, and digitalization solutions, including electric motors and variable speed drives, to enhance the energy efficiency and integration of Coolbrook’s technology.
JSW-Steel
JSW Steel are optimizing casting speeds, reducing energy costs and ensuring real-time visibility using ABB Ability™ Smart Melt Shop at their Dolvi plant in India. 

What’s next on the horizon for decarbonization technologies in hard-to-abate industries like steelmaking?

The next chapter will be defined by scalability, modular solutions and smarter integration. A standardized approach that can be scaled and replicated across multiple sites significantly reduces engineering time and accelerates the deployment of new facilities. This means that heavy-asset industries can decarbonize quicker, while the rapidly growing demand for new energy like green hydrogen can be met.

That focus on delivering scalable solutions is key to our collaboration with Charbone Hydrogen as it seeks to grow green hydrogen production in North America, and also in our collaboration with Topsoe and Fluor. That alliance is focused on developing a standardized model for Solid Oxide Electrolyzer Cell (SOEC) factories – a step that will dramatically accelerate the deployment of electrolyzers – in Virginia, US.

Increasingly, we’re building digital capability directly into the foundations of industrial systems. AI, automation and predictive analytics are no longer optional add-ons but at the core of how energy and process systems are designed and managed from day one. This allows us to build industrial operations that are more resilient, more adaptive and more economically sound.

We often say that we need to prioritize progress over perfection. The technologies are here, the partnerships are forming, and the challenge now is to apply what we’re developing with pace and purpose. At ABB, we believe that everything that runs well, can always be engineered to run better. With our technology, we can support decarbonization efforts by helping industries outrun, leaner and cleaner.

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