Is scrap metal the key to cutting carbon emissions?
As governments impose stricter reduction targets, steelmakers are under pressure to find cleaner alternatives
Steel is the base for almost all modern infrastructure, from buildings to subway platforms and bridges, steel is one of the secret ingredients that keeps society moving. However, making new steel is a brutally carbon-intensive process which can drastically improved on with the right processes.
Carl-Gustaf Göransson, CEO of Lindemann Metal Recycling, explains that the push for a more environmentally friendly steel often forgets about a component that could create a greener product—scrap metal.
The problem with steel production
Steel production currently accounts for approximately 8 percent of global CO2 emissions. Traditional methods rely on blast furnaces, which burn large amounts of coking coal to reduce iron ore, releasing substantial greenhouse gases. As governments impose stricter carbon reduction targets, steelmakers are under mounting pressure to find cleaner alternatives.
‘Green steel' refers to steel produced using processes that significantly lower CO2 emissions. This process includes using hydrogen as a reducing agent, direct electrification, and the growing adoption of electric arc furnace (EAF) technology. Unlike blast furnaces, EAFs use electricity to melt scrap metal, bypassing the need for raw iron ore and significantly cutting carbon emissions.
Scrap metal has emerged as a key player in transforming the metals industry to become greener and more sustainable. Recycling scrap steel requires up to 74 percent less energy compared to producing steel from raw materials. It also drastically reduces CO2 emissions, with studies showing that using one ton of scrap steel can save nearly 1.5 tons of CO2.
Another benefit of steel is its ability to be infinitely recycled without losing its properties, making it one of the most sustainable materials available. By increasing the share of scrap in steel production, industries can make significant strides toward net-zero targets, while also reducing reliance on mining-intensive virgin iron ore.
Scaling scrap-based steel production
Despite its advantages, the transition to scrap-based steel production faces several challenges. While scrap steel availability is increasing, demand is set to rise faster. Some regions, particularly in developing economies, lack efficient scrap collection and processing infrastructure.
Another concern involves impurities in scrap metal, such as copper, that can impact the quality of high-grade steel. To counter this issue, advanced shredding, sorting, and refining technologies — such as those developed by Lindemann and its partners — ensure that scrap-based steel meets stringent industry standards. One method is the Lindemann NtCut scrap metal shear, used to reduce material to a more compact size.
A final factor to consider is that, while EAFs produce fewer emissions, their environmental benefit depends on electricity sources. If powered by fossil fuels, the CO2 reduction advantage diminishes. Therefore, the shift to renewable-powered EAFs is critical.
From scrap to essential component
To meet global decarbonization goals, the share of recycled steel in production must grow. Steelmakers are already investing in innovative technologies, such as hybrid furnaces that combine hydrogen-based reduction with scrap melting. Lindemann notes that the company will focus on incorporating these metal recycling technologies into its processes and will soon include AI-driven scrap sorting to improve material purity.
Policymakers are also introducing incentives and regulations that encourage scrap recycling. The European Union's Green Deal includes measures to promote circular economy principles, driving higher scrap utilization in steelmaking.
Scrap metal is no longer just an industrial byproduct, it is the foundation of a more sustainable steel industry. By increasing scrap-based production, investing in cleaner energy, and improving recycling infrastructure, the steel sector can take meaningful steps toward cutting emissions and achieving global CO2 reduction targets.
As industries race toward net zero, one thing is clear: the future of steel is green, and scrap metal is the key to making it happen.
