According to a report from the consultancy, BOF output through 2050 is expected to decline 0.5% annually while EAF output could increase 2.3% each year. 

“Together with green hydrogen-based direct reduced iron (DRI), scrap use and adoption of carbon capture, utilization and storage (CCUS), [the] steel industry’s carbon emissions can decline 30% from current levels by mid-century,” Wood Mackenzie research director Malan Wu said. 

The report predicts that by 2050 nearly half of the world’s steel output will be through the electric arc furnace. 

The report also predicts that China will lead in reducing absolute emissions, cutting them by half over the next 30 years. But mature economies will also make significant reductions, the report said. 

“Mature economies such as Japan, Korea, Taiwan, EU, U.K. and U.S. will need to do more to curb emissions as developing nations will be slow adopters and small contributors to emissions cuts. These economies will abate emissions by nearly 50% from current levels while maintaining or increasing their steel output.”