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Home Editor's Desk Market Research

Green Steel, Hydrogen, and the Move Towards Decarbonization

Nimish by Nimish
August 6, 2025
in Market Research
Reading Time: 4 mins read
IDTechEx

Green Steel, Hydrogen, and the Move Towards Decarbonization

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Sustainable technologies are generating a record amount of interest across many sectors. With the rising adoption of low-carbon hydrogen and its use for applications like green steel, as well as the development of other clean energy forms, new technologies are emerging to provide alternative materials for companies wanting to decarbonize. IDTechEx’s portfolios of Energy & Decarbonization and Sustainability Research Reports cover an extensive range of the latest developments within the sector.

The demand for steel and decarbonization

Growing populations and the exponentially increasing industrialization happening worldwide are contributing to the high demand for steel, which is an industry known for high emissions. The increased need for data centers to keep up with AI developments, alongside renewable energy projects, are other factors driving this demand. The trend of decarbonization has been longstanding, with clean energy being one of the leaders in the potential reducing of emissions, meaning the development of green steel projects is welcome, though will require international cooperation.

The blast furnace is currently the most incumbent means of producing steel, though is highly carbon intensive. This process produces approximately 2.3 tonnes of CO2 per tonne of crude steel, causing sustainability issues, and raising the need for stricter regulations and increased incentives for a number of countries, particularly within the EU.

The scrap electric arc furnace (EAF) approach is also very common in steel production, and is similar to a recycling process, where scraps of steel can be processed and reused. This method can be fully electrified, making it possible for renewable energy to be used instead of fossil fuels, creating emissions close to zero, and resulting in the production of green steel. In the direct reduction of iron (DRI) method which works alongside the EAF route, there is the potential for blue or green hydrogen to be used as a reducing agent, which would therefore also be a method for green steel production. IDTechEx’s report, “Green Steel 2025-2035: Technologies, Players, Markets, Forecasts”, covers the various routes to producing steel, with benefits and drawbacks to each method.

Green hydrogen as an alternative to batteries

Water electrolysis that uses renewable energy to split water into hydrogen and oxygen is the main method of producing green hydrogen, with an emission-free process. Companies that already use hydrogen as a key chemical feedstock are expected to uptake green hydrogen sooner than others over the next few years, due to existing infrastructure. Fertilizer and chemical manufacturers and refineries are the most likely to be able to make the change to green hydrogen with relatively small operational changes, paving the way for other potential green hydrogen users to follow.

Steel production and heavy transportation are likely to drive green hydrogen demand leading up to 2040, as well as other applications where batteries might not be the most well-suited energy source for efficiency reasons. Hydrogen fuel cells are gaining traction due to their short refueling times and long ranges when compared to batteries, with green hydrogen acting as the best way to ensure zero emissions are produced in order to support sustainability claims.

Decarbonizing the power sector is another main driver for green hydrogen production, alongside large-scale renewable energy storage and aviation. These applications are likely to take flight between 2040 and 2050, with cost limitations currently acting as a barrier to adoption.

Water electrolyzer technology innovation is key to the success of the green hydrogen industry. While the manufacturing of electrolyzers is scaling up globally, component R&D and innovation will be key to improving the efficiency of hydrogen production and reducing reliance on critical minerals. Many component manufacturers recognize these key trends and are aligning their products with the needs of the green hydrogen industry. IDTechEx’s report, “Materials for Green Hydrogen Production 2026-2036: Technologies, Players, Forecasts”, covers the main materials and components for electrolyzer stacks, as well as the supply chains and key players making them.

The materials behind the processes

Wind turbines, hydrogen tanks, and solar panels are all materials imperative in allowing for the developments of green energy technologies. IDTechEx’s report, “Composite Materials for Green Energy Markets 2026-2046: Sustainable Technologies, Players & Trends”, covers materials within the green energy market, with evaluations of their performances and the regulations driving their uptake. Tidal power, automotives, and geothermal power are also covered in the report, with composite materials such as carbon fiber offering versatility and strength to a number of applications. Despite their usage in sustainable applications, however, the materials themselves can be difficult to decarbonize and require energy intensive processes to source.

For more information on the green energy sector and the materials involved in manufacturing, visit IDTechEx’s portfolios of Energy & Decarbonization and Sustainability Research Reports and Subscriptions.

Tags: DecarbonizationGreen SteelhydrogenIDTechEx
Nimish

Nimish

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