In response to the global low-carbon trend, China Steel has joined hands with the downstream steel industry to reduce carbon emissions and produce steel and downstream products that comply with the carbon neutrality declaration. This year (112), two steel products, "wire rod" and "hot-rolled steel coil", were selected. China Steel will first demonstrate the production of carbon neutral steel and then supply it to Jinhe and Shengyu Steel. Customers will follow the same declaration model and eventually produce downstream products and cold-rolled steel that comply with carbon neutrality. Recently, China Steel produced the first batch of 150 metric tons of wire rod, which has passed the third-party verification of the British Standards Institution (BSI) and was delivered to Jinhe for processing into hexagonal screws. Once completed, it will be Taiwan's first batch of green steel products that comply with carbon neutrality. This is the first step taken by China Steel, and it is also a big step for Taiwan's steel industry to enter a low-carbon transformation.
China Steel Corporation started planning and referring to the "PAS 2060 Implementation of Carbon Neutrality Reference Specification" (hereinafter referred to as PAS 2060) last year (111), and implemented carbon neutral steel production operations in three steps. First, the steel types and production boundaries were selected, and the carbon footprint of the steel was checked and calculated; secondly, carbon reduction measures were taken to reduce carbon emissions, and the carbon footprint was checked again; finally, the remaining carbon emissions after the reduction measures were taken were offset through the offset mechanism, thereby achieving carbon neutrality of steel.
China Steel's first batch of carbon-neutral wire rod coils uses the electric furnace of its group company, Zhonglong Steel, to produce small steel billets, replacing the original converter process in the plant. The small steel billets are transported to China Steel's wire rod plant for processing, and the wire rod plant simultaneously promotes carbon reduction rolling. After calculating the carbon footprint and third-party verification, it was shown that the carbon reduction effect of this batch of steel can reach 25%. The remaining carbon emissions are then fully offset by the carbon credits owned by China Steel, achieving carbon neutrality for the first batch of wire rod coils. These carbon credits used for offsetting come from China Steel's voluntary carbon reduction measures in previous years and have been reviewed and approved by the competent authorities. Therefore, this batch of steel can be said to be the result of China Steel's continuous refinement. The first batch of carbon-neutral wire rod products has been delivered to Jinhe for subsequent processing and production of hexagonal screws. Jinhe will also follow the PAS 2060 approach to declare carbon neutrality, and third-party verification is expected to be carried out by the end of 2013.
China Steel Corporation (CSC) continues to refine its carbon emission reduction technologies, enabling downstream customers to source high-quality, low-carbon steel products locally. CSC has come to understand that simply selling low-carbon steel to customers is insufficient to meet the global low-carbon trend. Only by upholding the belief that "good customers, good downstream, good CSC," and fully promoting the low-carbon transformation of Taiwan's steel industry, can we, along with our customers, adapt to the competitive landscape amidst the carbon neutrality trend. CSC is demonstrating the carbon neutral product declaration process to help customers establish product carbon footprint verification capabilities. This is particularly important before developed countries like the EU and the US formally impose carbon taxes on imported steel products. This helps companies prepare for the green tariffs, as they need to prepare for them.
China Steel and the Taiwanese steel industry have grown together, transforming from pursuing "quantity" to improving "quality", and then moving towards enhancing "value". Faced with the competitive situation in the global steel market and the daunting challenge of global carbon neutrality in 2050, China Steel has outlined a new vision of "intelligent innovation, green energy and carbon reduction, value co-creation, and becoming an outstanding enterprise with sustainable growth". It has declared "high-value refined steel mills and development of green energy industries" as the two main operating axes, as well as the three major transformation actions of "low-carbon transformation", "digital transformation" and "supply chain transformation". The production of the first batch of carbon-neutral steel by China Steel not only implements the company's operating axis, but also sets a milestone for Taiwan's steel industry. In the process, through demonstration and declaration practices, it takes the lead in opening up a low-carbon path for the industry, which helps alleviate the carbon anxiety of downstream steel users. China Steel hopes to continue to work with Taiwan's steel industry supply chain to move forward steadily on the path of low-carbon transformation.
Source: China Steel Corporation
