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Decarbonizing Steel Industry Thermal Systems Technological Pathways and Practices

Chinese

Aug 2026

Report

Energy Transition Industry

Summary:
This report examines the low-carbon transition pathways for thermal/heating systems in China's steel industry, reviewing the policy drivers behind decarbonization and analyzing the technological trajectory across near-, medium-, and long-term horizons (2025–2060). It surveys and compares the applicability, economics, and emissions-reduction potential of key technologies—including waste heat recovery, system efficiency improvements, and hydrogen-based metallurgy—through in-depth case studies (HBIS Group's hydrogen metallurgy, Shougang Jingtang's process interface optimization, and Sinosteel/CISP's hydrogen-based smelting reduction, among others). It further identifies the practical barriers to scaling these technologies (high green hydrogen costs, renewable energy intermittency, stranded-asset risk, and weak cross-sector coordination mechanisms), and proposes policy recommendations to accelerate the sector's shift toward integration with renewable energy systems.
Suggested citation:
Liu Xueye, Yang Li, Liu Jingning, and Hong Jialing. 2026. Decarbonizing Steel Industry Thermal Systems: Technological Pathways and Practices. Industrial Low-Carbon Heating Potential and Implementation Roadmap Series Report No. 2. Report. Beijing: Institute for Global Decarbonization Progress.
Decarbonizing Steel Industry Thermal Systems Technological Pathways and Practices