Lowering CO2 in Cement and Steel: Global Trends and Tech Challenges

Cement and steel manufacturing are among the world’s most energy-intensive industries. Their production requires heat at extremely high temperatures and the use of special chemicals to transform raw materials into final product. As a result, CO₂ emissions from steel and cement are extremely intense and represent approximately 7% to 9% of all carbon emissions globally.  

In cement production, limestone is heated in furnaces to approximately 1400 degrees Celsius. Overall, the production of one ton of cement results in half a ton of CO₂ emissions.

In the blast furnace method of steelmaking, CO₂ is emitted as a byproduct of the deoxidization of iron ore. Production of one ton of steel results in the emission of approximately two tons of CO₂.

As these processes are complex and difficult to modify, cement and steel manufacturing are called “hard-to-abate” industries. However, the development of modern technologies, including carbon capture and storage (CCS), plus the use of alternative materials, is lowering emissions.

Why the World Needs Emission Reduction

Reducing CO₂ from cement and steel production is essential to controlling global emissions. CO₂ contributes massively to global warming, ecosystem damage, rising sea levels, and extreme weather changes. However, global population growth demands a constant increase in construction and manufacturing activity, making emissions reduction a very difficult goal.

Governments play a critical role in reducing emissions through tightening regulations, taxing industrial emissions, and supporting investments in carbon capture and storage. In 2024, China included the steel and cement industries in its national carbon market to lower industrial emissions through higher financing costs. In the European Union, the Carbon Border Adjustment Mechanism (CBAM) has imposed additional taxes on the import of high-emission products. Meanwhile, the U.S. has introduced tax credits for CCS under the Inflation Reduction Act.

Carbon Capture Technologies

Carbon capture and storage has become an important technology for the steel and cement industries. According to Bloomberg, decarbonizing steel and cement production has become “the primary driver of demand for the carbon capture and storage market.” However, introducing CCS is complicated due to high capital costs, complex installation, and sophisticated operations. 

At the same time, other technologies are coming into the market, including the use of hydrogen instead of coal in steel production, which eliminates almost all CO₂ emissions. Although hydrogen-based steelmaking is still in its early stages, countries with significant renewable energy sectors are progressively exploring this method. Europe is one of the leaders in applying this technology due to rapidly expanding production of hydrogen from renewable sources.

In the cement industry, a new method of CO₂ emission reduction uses fly ash (a byproduct of coal combustion) and slag (a byproduct of steel production). However, the use of these materials often depends on availability and regional industrial development. Employing renewable energy to power kilns also results in lower emissions from the limestone heating process.

Limitations and Challenges of CO₂ Capture

The most significant limitation on the industrial use of CCS seems to be its capital cost, as achieving full decarbonization of the steel and cement industries would require trillions of dollars (Bloomberg). CCS technology requires complex infrastructure, including the construction of capture plants and storage sites with a network of pipelines and monitoring systems.

Hydrogen production also requires energy and relies on renewable electric power. Similarly, there is currently a lack of developed infrastructure, storage capacity, and transportation arteries.

Outlook for Emission Reductions

There is no one magic solution for decreasing CO₂ in the steel and cement industries. This process will require implementing various mechanisms, including technological innovation, regulatory support, and financial incentives. The role of global governments is important, as critical steps to lower carbon emissions, including tax credits, the introduction of carbon markets, and import tariffs on high-carbon products, require high-level regulation and state mandates. 

The decarbonization of cement and steel is progressing as the threat of global warming becomes more evident. However, a major breakthrough is unlikely until carbon capture technologies become more cost-effective, less complex, and widely available. Until then, environmental responsibility will continue to be challenged by rising consumer demand from a growing population.