Hyundai to Build Low-Carbon Steel Plant in Louisiana, Automakers Encouraged to Source Green Steel
Hyundai plans to build a low-carbon steel plant in Louisiana, with a target completion date of 2029, utilizing blue hydrogen initially and transitioning to green hydrogen by the mid-2030s. This facility aims to reduce emissions by at least 75% compared to traditional methods, while major automakers like General Motors and Ford have committed to sourcing 10% green steel by 2030. Meanwhile, Cleveland-Cliffs has shifted focus from a green steel initiative in Ohio to a coal-based project, highlighting the challenges in the industry's transition to sustainable practices.
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Cleveland-Cliffs has canceled a $500 million initiative supported by the Biden administration for greener steelmaking equipment in Ohio, opting instead to work with Trump's Energy Department on a coal-focused project. U.S.
Steel, now owned by Nippon Steel, has yet to detail its green investment plans despite promises. Hyundai's Louisiana project aims to construct a low-carbon steel factory, targeting completion by 2029. Initially, the plant will use blue hydrogen for cleaner direct reduced iron production, transitioning to green hydrogen by the mid-2030s.
This facility could reduce emissions by at least 75% compared to traditional steelmaking methods. Hyundai plans to test its direct reduced iron technology in South Korea before implementation. General Motors and Ford have pledged to source at least 10% green steel by 2030, while other automakers have set varying targets. However, a report indicates that commitments for fossil-free steel represent less than 2% of total demand among car manufacturers.
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