In a groundbreaking achievement, China has unveiled its inaugural million-tonne near-zero-carbon steel production line located in Zhanjiang City, within the southern province of Guangdong. This milestone represents a significant advancement in the steel industry’s shift towards more environmentally friendly and low-carbon production methods.
This innovative production line utilizes a state-of-the-art hydrogen-based metallurgical electric smelting process, which substitutes traditional coke with hydrogen as the main reducing agent. This transition is crucial because it dramatically decreases carbon emissions and opens up a new avenue for the steel sector to lessen its historical dependence on fossil fuels. The core hydrogen-based shaft furnace produces direct reduced iron that meets specific metallization targets, while high-efficiency green electric furnaces enhance overall energy efficiency. Remarkably, this new process can cut carbon emissions by an impressive 50 to 80 percent when compared to conventional methods.
According to the project team at Baowu Steel's Zhanjiang facility, this million-tonne near-zero-carbon steel line is projected to eliminate over 3.14 million tonnes of carbon emissions each year. To put that into perspective, this reduction is akin to creating approximately 2,000 square kilometers of forest, a substantial benefit for the environment.
The current phase of China’s 14th Five-Year Plan (2021–2025) is pivotal for the steel industry as it aims to achieve high-quality development, with green transformation being a key focus. During this period, the number of newly certified green steel plants has seen a steady increase, with 126 new certifications granted from 2021 to 2024 alone.
By the end of the third quarter of 2025, significant reductions in emissions are expected: sulfur dioxide, particulate matter, and nitrogen oxides levels are anticipated to drop to 0.18 kg, 0.22 kg, and 0.33 kg respectively. These figures represent decreases of 28 percent, 26.7 percent, and 36.5 percent compared to the end of 2021, showcasing the effectiveness of these initiatives.
Additionally, during the 14th Five-Year Plan, the China Iron and Steel Association initiated an "extreme energy efficiency" program. In 2024 alone, the industry achieved energy savings equivalent to around 10.5 million tonnes of standard coal, which resulted in a reduction of carbon emissions by approximately 27.5 million tonnes. This amount is comparable to the annual carbon absorption of about 570 million mature trees, highlighting the profound impact of these energy efficiency measures.
