The construction and industrial equipment sectors are also emerging as strong markets for green steel

The steel industry is at a critical turning point as it attempts to shift away from carbon-intensive processes toward more sustainable methods.

Central to this transition is the emergence of green steel, produced using hydrogen-based direct reduced iron (H2-DRI) and electric arc furnaces powered by renewable energy.

However, while the technologies are becoming increasingly viable, the financial and operational risks remain high.

A new report by IDTechEx, Green Steel 2025-2035, emphasises that demand-side commitment is just as vital as technological readiness.

Long-term offtake agreements are proving to be essential in de-risking projects and securing the funding needed to bring green steel production to life.

Companies such as Stegra (H2 Green Steel) have raised more than €6.5bn (US$7.1bn) by locking in advance purchase deals with major clients like Mercedes-Benz, BMW, and Kingspan, well before production begins.

This level of early buy-in allows green steel projects to move forward with confidence and scale.

Regulatory frameworks are also playing a key role. The European Union’s Emissions Trading System (EU ETS) and the Carbon Border Adjustment Mechanism (CBAM) are reshaping the economics of steel production, making low-carbon alternatives more competitive.

Automotive leads

Moreover, global climate targets and Scope 3 emissions goals are pushing companies to decarbonise their supply chains, with the automotive sector leading the way.

"European OEMs, as well as Tier 1 and 2 suppliers, are actively procuring green steel," IDTechEx said.

"For example, the Swedish startup Stegra (H2 Green Steel) has successfully secured offtake agreements with a roster of automotive leaders including Mercedes-Benz, Porsche, Scania, and ZF. Likewise, SSAB, a pioneer with its HYBRIT fossil-free steel project, has established partnerships with the Volvo Group. Established steelmaking giants are also making significant moves – ArcelorMittal is supplying its XCarb® recycled and renewably produced steel to General Motors, signaling growing momentum for green steel in North America."

The construction and industrial equipment sectors are also emerging as strong markets for green steel. In some cases, even hyperscale data centre developers and renewable energy companies are committing to lower-emission materials to meet sustainability benchmarks.

For now, many of these companies are willing to absorb the “green premium” associated with cleaner steel, though future competitiveness will depend on wider adoption and falling production costs.

Despite this progress, significant challenges remain. Green steel producers must contend with project delays, cost overruns, limited availability of renewable electricity, and the absence of global standards for defining and certifying "green" steel. Pricing volatility is also a concern, especially when offtake agreements must be negotiated years ahead of delivery.

Looking ahead, the rise of “green iron hubs”, regions with abundant renewable energy producing hydrogen-reduced iron for export, could reshape global trade patterns.

IDTechEx predicts that hydrogen-based steel production could reach 46mn tonnes by 2035, a small fraction of global output, but a meaningful step toward net-zero industrial emissions.

Also read: EGA to boost US aluminium supply with new smelter

SMS group to modernise automation at cold rolling mill. (Image source: SMS)

thyssenkrupp Electrical Steel (tkES) has awarded SMS group a contract to upgrade the automation systems at its four-high CVC cold rolling mill in Gelsenkirchen, Germany.

Originally built by SMS in 1974, the reversing mill is dedicated to processing grain-oriented silicon steel (GO Si-Steel). The modernisation aims to enhance automation, improve safety, and integrate advanced digital technologies to maximise plant availability and efficiency.

The upgrade will be carried out in two phases, with completion scheduled for 2027. Central to the project is the replacement of the existing X-Pact electrical and automation systems with the latest generation of automation technologies.

These include the X-Pact Embedded controller, high-speed EtherCAT I/O systems, and new ergonomic control pulpits.

A virtualised IT infrastructure will also be introduced to improve lifecycle management and reduce dependence on specific hardware or operating systems.

The automation package features level 1 and model-based level 2 systems specifically tailored for GO Si-Steel production, supported by the X-Pact Vision human-machine interface. 

^{SMS’s integrated safety concept for mechanical, electrical, and automation systems: safe plant access with a key transfer system}

This intuitive HMI enables efficient operator guidance and provides tools for system diagnostics, maintenance, and troubleshooting. A master controller will oversee the rolling process and coordinate data flow across all automation levels, including safety systems.

In preparation for the upgrade, tkES and SMS conducted thorough on-site assessments and jointly developed a comprehensive safety concept.

The resulting measures are designed to improve occupational safety during both operation and maintenance activities.

An optimised performance

To ensure seamless commissioning, SMS will conduct its X-Pact Plug & Work integration test, combining the original hardware and software with the new systems in a simulated test environment.

Leveraging a digital twin of the mill, this approach allows final optimisations to be made before installation, reducing both time and costs associated with commissioning and documentation.

Independent safety control functions will also be fully tested during this phase.

The project builds on a long-standing collaboration between tkES and SMS, including successful revamps of the cold rolling mill in 2000 and 2011.

Through ongoing X-Pact Service contracts, the mill has continued to operate at a stable and optimised performance level, supported by SMS’s technical expertise and tkES’s operational insights.

Beyond enhancing automation and safety, the project supports tkES’s long-term commitment to the efficient production of high-quality electrical steel.

The company’s grain-oriented silicon steel, containing 3.1% to 3.5% silicon, plays a crucial role in global energy transmission and distribution networks by enabling minimal energy losses and greater sustainability.

Philipp Geisler, solutions flat products at SMS, said, “Our process knowledge and integrated solutions in design, research and development, and automation, make us the ideal partner for tkES’s modernization goals. Together, we develop tailored solutions for electrical steel production to boost the availability and safety of the reversing cold rolling mill for years to come.”

Also read: SMS group and Ansteel partner to drive green steel innovation

The EPDs were independently verified. (Image source: OCI)

In a move that underscores its sustainability leadership in the region, Oman Cables Industry (OCI) has achieved Environmental Product Declarations (EPDs) for its main cable families.

This milestone reinforces OCI’s role as both a regional leader in sustainable practices and a provider of comprehensive infrastructure solutions.

The EPD certifications offer a significant advantage to OCI’s customers by helping them meet rising demands for environmental transparency and carbon accountability across sectors such as construction, utilities, and infrastructure.

With these certifications in place, OCI enables stakeholders to build more responsibly, drive sustainable innovation, and stay ahead in an increasingly climate-conscious market.

The EPDs were independently verified and published by EPD Norge, developed in accordance with cable-specific Product Category Rules (PCRs).

Investing in ESG frameworks

These declarations present a rigorous, science-based account of each product’s environmental footprint, covering its entire lifecycle from raw material extraction to disposal.

As sustainability and carbon reporting become increasingly important for procurement decisions, regulatory compliance, and access to green financing, verified EPDs are proving essential.

They also support adherence to internationally recognised green building certification systems such as LEED and Estidama, as well as aligning with broader ESG investment frameworks.

OCI's EPD-backed products help customers achieve environmental standards and demonstrate climate action, whether for government infrastructure or private projects. This result enhances OCI's eligibility for worldwide and regional green tenders, and supports Oman's economic transformation under Vision 2040.

“At OCI, sustainability is not a campaign, it’s a core business principle,” said Erkan Aydogdu, CEO of Oman Cables Industry. “Securing EPD certification reflects our continued commitment to operational transparency, responsible growth, and long-term stakeholder value. We’re committed to empowering our customers and partners with the data they need to compete in tomorrow’s markets. And this is just the beginning more EPD certifications are underway.” 

OCI’s verified EPDs are publicly accessible through the EPD Norge website.

“We’re not just manufacturing cables, we’re enabling the next generation of infrastructure with purpose, performance, and accountability,” Aydogdu added.

Also read: OCI shares financial results; announces new board members

The facility opened on 19 June 2025. (Image source: Teledyne GFD)

Teledyne Gas & Flame Detection (Teledyne GFD) has partnered with Industrial Detection Solutions (IDS) to establish a 699 m² manufacturing facility in Dammam, Saudi Arabia, marking a significant step towards localising production of advanced gas detection technologies in the Kingdom.

The facility, which opened on 19 June 2025, will produce high-precision sensors used in hazardous environments such as oil and gas drilling sites, LNG/CNG plants, and petrochemical facilities.

The initiative supports Saudi Arabia’s IKTVA programme, which encourages economic diversification and local supply chain development in the energy sector.

By bringing manufacturing closer to end users and suppliers, the partnership is expected to reduce lead times and enhance safety support across the region.

More features added

Key products to be produced at the new plant include Teledyne GFD’s DM-700 toxic gas sensor, and the FP-700 and IR-700 sensors for combustible gas detection.

These ‘smart’ sensors offer non-intrusive monitoring using electrochemical, catalytic bead, and infrared technologies, with robust designs that resist common causes of failure such as water ingress, corrosion, and vibration.

“Our new partnership with Industrial Detection Solutions ensures that manufacturing is closer to both customers and suppliers, enabling even faster delivery of class-leading gas detection products in support of more efficient supply chains,” said Thomas Moeller, VP Sales & Marketing at Teledyne GFD. “The proven solutions manufactured in KSA will better serve a vast regional industry that recognises the importance of a robust and prevalent safety culture. We are proud to be part of KSA’s remarkable ongoing journey of economic and industrial growth, and we look forward to a successful future together.”

Teledyne GFD recently also introduced the PS DUO, a new portable dual-gas detector designed to improve personal safety in hazardous environments. The compact handheld device can detect two gases simultaneously using passive diffusion sensing, and features real-time monitoring with audible, visual and vibrating alarms to alert users when gas levels exceed safe limits.

The PS DUO offers a broad selection of gas combinations including carbon monoxide (CO), hydrogen sulphide (H₂S), sulphur dioxide (SO₂), ammonia (NH₃), oxygen (O₂), hydrogen (H₂), nitrogen dioxide (NO₂), and ozone (O₃). Its ATEX/IECEx rating and 2-year warranty make it ideal for industrial settings. Users can select gas pairings tailored to their specific applications, such as H₂S and SO₂, particularly relevant in Middle Eastern operations.

The detector features a bright LCD screen displaying continuous gas concentration, wireless connectivity for easy data transfer, and internal memory capable of storing 30 alarm logs. Housed in a rugged IP67-rated rubberised casing, the PS DUO is lightweight (200g), ergonomic, and designed for comfort and ease of use in demanding environments. It runs for up to two years on a single replaceable battery.

Also read: Teledyne GFD's new portable dual-gas detector