The steel industry, responsible for about 7% of global carbon emissions, is witnessing a surge in green steel innovation across Asia. Japan, China, and South Korea are leading efforts to develop low-carbon steel technologies, though none have reached full commercialization yet.
Japan’s Nippon Steel has set a world record by reducing carbon emissions by 43% using green hydrogen in steelmaking. However, scalability challenges and limited local green hydrogen supply hinder commercialization. The Japanese government aims to lower hydrogen costs to remain competitive and has introduced subsidies for low-carbon steel applications in sectors like automotive and construction.
China’s Baowu Steel Group has achieved a 20% reduction in emissions using the blast furnace method and is advancing direct reduced iron (DRI) technology. South Korea’s POSCO plans to launch hydrogen-based DRI steelmaking by 2028. Analysts suggest that while each country has strengths, Japan lags behind Europe, China, and South Korea in DRI commercialization by 5–10 years.
The competition underscores Asia’s commitment to decarbonizing the steel sector, driven by growing demand for sustainable materials and stringent environmental regulations.
