Türkiye sets new emission reduction targets for the steel industry

According to the newly launched decarbonization path map, the government of Türkiye has formulated a new emission reduction target for the steel industry, which plans to reduce the emissions of the steel industry by 99% and the aluminum industry by 75% by 2053.

The analysis report prepared by PricewaterhouseCoopers Türkiye with the assistance of the European Bank for Reconstruction and SPH540HY steel Development pointed out that most of Türkiye's production uses electric arc furnaces used for scrap steel, so the country's steel industry has a competitive advantage in terms of carbon levels from Scope 1 emissions. However, at the same time, high electricity costs are a limiting factor for the country's emissions reduction.

For most countries, the carbon dioxide emission intensity of the electric arc furnace is lower than 0.6 tons of carbon dioxide per ton of steel. As one of the countries with low carbon intensity of the electric arc furnace path, Türkiye's average emission intensity is 0.29 tons of carbon dioxide per ton of steel (0.04 belongs to scope 1, 0.25 tons belongs to scope 2).

In the alkaline oxygen converter pathway, the carbon intensity in many countries varies between 1.8 to 4.0 tons of carbon SPH540HY steel dioxide per ton of steel emissions. Türkiye's comprehensive path carbon intensity is higher than the EU average, reaching 2.20 tons of carbon dioxide emissions per ton of steel (of which 2.17 tons belong to scope 1 and 0.03 tons belong to scope 2).

At present, the proportion of fossil fuels in power generation (grid emissions) in Türkiye is relatively high, which still prevents facilities based on electric arc furnaces and induction furnaces from further reducing emissions and hinders the industry's transition to net zero. Therefore, Türkiye SPH540HY steel will increase renewable energy investment in the power industry to support the steel industry to move towards decarbonization goals.