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Decarbonization pathways analysis and recommendations in the green steel supply chain of a typical steel end user-automotive industry

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  • Shen, Jialin
  • Zhang, Qi
  • Tian, Shuoshuo

Abstract

China's automotive industry, the world's largest producer and consumer, has reached a crucial stage in its transition from rapid expansion to high-quality and low-carbon development. Considering the decarbonization of the whole automotive industry, in addition to reducing the CO2 emissions from fuel supply and exhaust pipes, which account for 65–80 % of the total value chain CO2 emissions, the automotive industry should also accelerate the decarbonization of raw materials, which contribute to 18–22 % of these CO2 emissions. Many automotive manufacturers are collaborating with steel producers on green steel initiatives due to the high CO2 emissions from steel production, the integrated nature of the steel supply chain, and the need for early planning in low-carbon steel production routes transformation. To clarify the carbon emission characteristic of the automotive steel supply chain, this research establishes a mathematical method for calculating cradle-to-gate carbon footprint of automotive steel product based on BF (Blast furnace)-BOF (Basic oxygen furnace), Scrap-EAF (Electric arc furnace), and DRI (Direct reduced iron)-EAF steel production routes. The cradle-to-gate carbon footprints of BF-BOF, Scrap-EAF, and DRI-EAF steel production routes are 1711.84 kgCO2/t-sp (steel product), 916.39 kgCO2/t-sp, and 2738.53 kgCO2/t-sp. A projection of CO2 emissions in automotive steel supply chain from 2020 to 2060 has been investigated, taking into account production structure adjustment, scrap recycling, and low-carbon electricity adoption, as well as the demand for automotive steel products. Projections from 2020 to 2060 indicate that the CO2 emission intensity of the automotive steel supply chain will decrease by 28.25 % by 2030 and 93.99 % by 2060, with total emissions dropping by 28.47 % and 96.92 %, respectively. This research identifies effective decarbonization measures in the automotive steel supply chain, including internal and end-of-life (EOL) steel scrap recycling, which offer significant CO2 emissions reduction without increased costs, demonstrating high cost-effectiveness. In a word, this research provides a technical framework and data foundation for decarbonizing the automotive steel supply chain.

Suggested Citation

  • Shen, Jialin & Zhang, Qi & Tian, Shuoshuo, 2025. "Decarbonization pathways analysis and recommendations in the green steel supply chain of a typical steel end user-automotive industry," Applied Energy, Elsevier, vol. 377(PD).
    • Handle: RePEc:eee:appene:v:377:y:2025:i:pd:s0306261924020944
    DOI: 10.1016/j.apenergy.2024.124711
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