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Steel's Transformation Opportunity  

From Coal to Clean: Transforming Steel for a Net-Zero Future 

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Executive summary

Steel, a cornerstone of the global economy, contributes 8% of global energy demand and 7% of emissions, emitting 2.6 gigatons of CO₂ annually.

As the largest industrial consumer of coal, responsible for 75% of its energy use, the sector must evolve to meet global climate targets. Emissions must fall by at least 50% by 2050, with continued progress toward net zero.

This transformation is not just a challenge—it’s an opportunity for forward-thinking steelmakers to drive sustainable growth while reshaping the future of the industry. 

The barriers to progress:
  • Coal Dependency: 75% of steel production relies on coal.
    Impact: Decarbonization efforts remain constrained. 
  • Hydrogen Challenges: High costs and limited availability of green hydrogen. 
    Impact: Adoption is stalled.  
  • Financial Barriers: Retrofitting plants demand significant capital. 
    Impact: Transition is slow.  
Driving transformation through Bioenergy: A Sustainable Solution

Bioenergy offers a powerful lever to decarbonize primary steelmaking. By replacing fossil coke with biocoke or biochar during the ore reduction process, steelmakers can reduce emissions while unlocking opportunities to valorize bioenergy by-products like bio-oil and biogas.

Leaders in the industry are evaluating mid-term strategies to establish profitable, scalable business cases for bioenergy adoption through “primary-buy, opportunistic-make” models. 

Feedstock Strategies: Evaluate local and regional supply chains for technical, volume, and cost alignment.

Innovative Technologies: Identify scalable, economically viable alternatives to coal.

Strategic Partnerships: Secure long-term feedstock supply and unlock revenue through offtake opportunities for bio-oil and biogas.

Revenue-Positive Models: Design actionable “make vs. buy” strategies to maximize profitability.

Policy and Regulation Insights: Assess the impact of incentives and compliance on technology adoption.

Key questions
  • Which biofeedstocks are most suitable for regional conversion into biochar, biocoke, pyro oil, and biogas? 
  • Who are the right partners to secure feedstock and optimize downstream offtake models?  How can operating and revenue models be designed to capture bioenergy opportunities profitably? 
  • What novel pretreatment and conversion technologies can match or exceed traditional coal's performance?
The FSX solution framework delivers end-to-end, stage-gated solutions tailored to the steel industry’s decarbonization journey:
Step 1:

Opportunity Screening

  • Assess Feedstock Options: Physicochemical factors, volume, and price. 
  • Screen technology options: novelty, maturity, and access.
  • Contextualize industry best practices.



Step 2:

Go, No-Go, Slow Go Decision

  • Establish techno-economic feasibility.
  • Develop S-curve scenarios on economic viability and scale.
  • Determine Supply chain readiness.
  • Assess future risk-reward scenarios.
Most preferred companies
Model of engagement
Viability of GTM strategy
Entry barriers & success factors

Credibility of market claims
Step 3:

Go-to-Market Strategy

  • Select relevant go-to-market partners through in-depth pre-due diligence.
  • Develop new business model.
  • Design go-to-market roadmap.

FSX Experience Story

Learn how a steel major accelerated their bioenergy adoption strategy for the 2030 horizon.

The FSX Six Lenses Methodology

Our holistic approach using propriety Sustainable-Growth-as-a-Service™ methodology examines your business through six critical lenses and delivers actionable insights. 

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Policy & Regulation

Carrots vs. Sticks

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Innovation & Technology

Potential vs. Scale

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Techno-economics

Tipping points vs. ROI

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Supply Chain

Technical vs. Capital Readiness

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Digitalization

Time-to-market vs. Payback Period

Partnership & Ecosystem

Risk vs. Reward

Explore how Bioenergy could be the bridging decarbonization lever.
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