Embracing green steel in wind turbine manufacturing: Advancing sustainable energy

With the growing demand for renewable energy, maintaining a sustainable supply chain has become a critical challenge. Wind turbines, a cornerstone of clean energy, depend largely on conventional steel, which has a substantial carbon footprint. Green steel, produced using low-emission technologies, presents a game-changing solution to this problem.

As the shift to renewable energy gains momentum, ensuring a sustainable supply chain is more crucial than ever. Wind energy plays a vital role in this transition, yet its production remains dependent on conventional steel, which carries a significant carbon footprint. Green steel, made using low-emission technologies, presents a transformative opportunity to minimize the environmental impact of wind turbine manufacturing.

The role of steel in wind turbine manufacturing

Steel is a fundamental material in wind turbines, making up approximately 70-80% of their total mass. Critical components such as towers, nacelles, and rotor hubs require high-strength steel to endure harsh environmental conditions. Currently, most steel used in wind turbine production comes from blast furnace-basic oxygen furnace (BF-BOF) processes, which are highly carbon-intensive, emitting approximately 1.85 metric tons of CO₂ per ton of steel produced. With the wind energy sector projected to exceed 2,000 GW of installed capacity by 2050, addressing the carbon footprint of steel manufacturing has become an urgent priority.

The environmental impact of conventional steel production

Accounting for roughly 7-9% of global CO₂ emissions, the steel industry is one of the largest industrial contributors to climate change. Conventional steel production relies on coal-powered blast furnaces, resulting in significant greenhouse gas emissions. In the wind sector, this reliance on carbon-intensive steel creates a paradox – while wind turbines drive decarbonization, their production still contributes to climate change. This contradiction underscores the need to incorporate green steel into the supply chain to align with net-zero goals.

The shift to green steel and its benefits

Green steel is produced using low-carbon or carbon-neutral technologies, offering a more sustainable alternative to traditional steel making, including:

• Hydrogen-based Direct Reduced Iron (H2-DRI): Replaces coal with green hydrogen, reducing emissions to nearly zero.
• Electric Arc Furnace (EAF) with scrap recycling: Uses renewable energy to recycle steel, significantly lowering carbon emissions.
• Carbon Capture and Storage (CCS) in BF-BOF: While still reliant on fossil fuels, this method can cut emissions by up to 90%.

Key benefits:

1. Significant CO₂ reduction: Hydrogen-based green steel can lower emissions by up to 95% compared to traditional methods.
2. Stronger ESG compliance: Companies adopting green steel align with investor expectations and evolving sustainability regulations.
3. Advancing the circular economy: EAF-based production maximizes material reuse, minimizing waste.
4. Long-term cost efficiency: As carbon pricing and regulations intensify, green steel will become increasingly cost-competitive.

Economic implications and market readiness

The economic feasibility of green steel relies on many factors, such as policy incentives, carbon pricing, and industry commitment. Current trends indicate several developments:

• EU Carbon Border Adjustment Mechanism (CBAM): It is a leveling of the playing field to prevent "carbon leakage" due to EU-ETS and to treat similarly hard to abate sectors inside and outside the European Economic Union. It will boost the competitiveness of green steel.
• Corporate demand: Several companies are actively pursuing green steel solutions for wind energy applications.
• Investment in green hydrogen: The cost of hydrogen is projected to drop significantly by 2030, making green steel production more economically viable.
• Government subsidies: Policies in the EU, US, and China are accelerating the transition to green steel through financial support and tax incentives.

Future trends and opportunities

The demand for sustainable manufacturing is driving significant innovation and collaboration across industries. The following trends and opportunities are expected to shape the future of green steel adoption in wind turbine manufacturing:

• Global green steel alliances: Industry-wide collaborations will promote technology standardization and drive down costs.
• Increased scrap utilization: Improved recycling systems will expand EAF-based steel production.
• Advancements in green hydrogen: Larger-scale production will reduce costs and improve accessibility for green steel manufacturing.
• Sustainable certification standards: Industry-wide green steel benchmarks will enhance market confidence and ensure regulatory alignment.
• Circular wind turbine design: Future wind turbines will increasingly feature modular and recyclable materials, maximizing sustainability.

A sustainable path forward

Incorporating green steel into wind turbine manufacturing is crucial for unlocking the full decarbonization potential of the renewable energy sector. Despite existing challenges, technological advancements, regulatory backing, and industry collaboration are driving progress. By embracing green steel, the wind energy sector can establish a new standard for sustainability, further solidifying its leadership in the global fight against climate change.

For industry professionals, investors, and policymakers, now is the time to accelerate the transition to green steel and secure a truly sustainable energy future.

Discover the future of green steel

Want to learn how digitalization is enabling businesses to balance sustainability and efficiency in green steel production?

Our latest report, Shaping the Future of Sustainable Steel: Lessons from Europe’s Steel Industry, explores the challenges, opportunities, and innovations driving the green steel transition.

Featuring insights from ArcelorMittal, ThyssenKrupp Materials Services, Tata Steel UK, and MCB Group, the report covers:

• Emission-reducing technological transformations
• Market dynamics and regulatory pressures
• The importance of third-party verification
• How digitalization ensures transparency and tracks emissions

Download your copy now to gain valuable insights on the green steel revolution and its impact on supply chain sustainability.

3/28/2025 1:16:00 PM