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Low-carbon hydrogen and renewable energy are key to boosting your sustainable steel industry, says Global Energy Monitor report!
O Brazil is facing a unique opportunity: to become a leader in global market de green steel. According to the report “Forging a sustainable future: Brazil's opportunity to lead in steel decarbonization", gives Global Energy Monitor (GEM), the country has the necessary tools for this transition, thanks to the abundance of renewable sources of energy and its vast reserves of high quality iron ore. But, like everything in life, it will not be an easy task. The current scenario of Brazilian steel industry still relies heavily on coal, and without change, the future does not look promising. The World Economic Forum predicts a significant increase in emissions from the sector by 2050 if more effective measures are not taken, according to the climainfo website.
However, there is a promising path: the use of low carbon hydrogen. Brazil, with its vast energy supply wind e solar, is well positioned to embrace this sustainable revolution, but the journey to becoming a global leader requires more than just potential.
Low-carbon hydrogen: The key to the future of green steel
The GEM report highlights the low carbon hydrogen as the ideal solution to decarbonize the steel industry Brazilian. This fuel, produced from renewable sources, could replace the intensive use of coal in the manufacture of aço, resulting in a much cleaner process. And here's the trick: Brazil has the perfect conditions for this.
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Thanks to its great energy production capacity wind e solar, Brazil is among the global leaders in renewable energy projects. According to the report, the country has 180 GW of wind farms in various stages of development, behind only powers such as China and Australia. In the solar sector, the situation is also promising, with 139 GW of projects underway, which places Brazil as the second largest in the world, just behind China.
This context places Brazil in an enviable position to lead the transformation of green steel market. However, this transition is not automatic, and a number of challenges still need to be overcome.
The challenges of the transition to green steel
Even with all this potential, the transition to green steel faces significant barriers. Currently, about 75% of the Brazilian steel industry still depends on the coal, a highly polluting fossil fuel. In addition, recent investments in intensive coal-fired furnaces at some of the country's largest power plants may delay replacement by cleaner solutions, such as hydrogen.
Another obstacle is the replacement of fossil coal by charcoal, an alternative that has already been adopted by some steel mills smaller. However, the impact of this replacement is still limited, and in the long term, it will not be enough to achieve the decarbonization goals necessary for Brazil to stand out in the global green steel market.
This is where public policies and a growing demand for sustainable steel come in. Without them, the sector may continue to be stuck in practices that are no longer in line with the current climate and economic reality.
Renewable energy potential: The Brazilian advantage
One of Brazil's strongest points in this race for green steel is undoubtedly its ability to produce energy in a sustainable way. In addition to having vast natural resources for the production of wind and solar energy, the country also has a predominantly energy matrix renewable, which represents a significant competitive advantage over other countries that still depend on fossil fuels.
The use of these energy sources for the production of low carbon hydrogen could put Brazil at the forefront of the global market green steel. By combining its expertise in the production of high-quality iron ore with clean technologies, the country can generate products with greater added value and position itself as a reference in the sector.
However, it is crucial that Brazil maintains its growth rate in renewable sources and implement clear policies to encourage the use of hydrogen. In this way, the industry can not only reduce its emissions, but also become more competitive on the international stage.
Union of values
With a unique combination of renewable energy abundant and high-quality iron ore, Brazil has enormous potential to lead the global green steel market. However, this leadership will only be achieved if the country fully embraces clean technologies, such as low carbon hydrogen, and face the challenges of decarbonization of its steel industry.
In other words, Brazil is one step away from becoming a giant in the production of sustainable steel, but it needs to accelerate its transition. Otherwise, it may end up falling behind in a market that increasingly values sustainability and solutions low carbon.
