A glimpse into the future of greener farm machinery can be seen in JCB's commitment to using green steel in its agricultural and construction equipment through a new partnership with Tata Steel UK.

In December 2024, it was announced that both had signed a Memorandum of Understanding, which will see JCB integrating low-emission steel into its world-renowned machinery range. To facilitate its sustainable commitments, Tata Steel is set to construct a 3-million-tonne-per-year electric arc furnace at its Port Talbot, South Wales site starting in summer 2025. With a £1.25 billion investment and up to £500 million in UK Government grants, the furnace is expected to reduce CO₂ emissions at the site by up to 90% and cut the UK's overall carbon emissions by about 1.5%.

Steel is the backbone of modern infrastructure, but its production is one of the most carbon-intensive industrial processes. As industries seek to cut emissions in line with global climate commitments, the push for ‘green steel’ has intensified. As Carl-Gustaf Göransson, CEO of Lindemann Metal Recycling, explains, at the heart of this transition lies a crucial, often overlooked, material – scrap metal.

Steel production currently accounts for approximately 8% of global CO₂ emissions. Traditional methods rely on blast furnaces, which burn large amounts of coking coal to reduce iron ore, releasing substantial greenhouse gases. As governments impose stricter carbon reduction targets, steelmakers are under mounting pressure to find cleaner alternatives.

‘Green steel’ refers to steel produced using processes that significantly lower CO₂ emissions. This includes using hydrogen as a reducing agent, direct electrification, and the growing adoption of electric arc furnace (EAF) technology. Unlike blast furnaces, EAFs use electricity to melt scrap metal, bypassing the need for raw iron ore and significantly cutting carbon emissions.

Scrap metal has emerged as a key player in this transformation. Recycling scrap steel requires up to 74% less energy compared to producing steel from raw materials. It also drastically reduces CO₂ emissions, with studies showing that using one ton of scrap steel can save nearly 1.5 tons of CO₂.

Moreover, steel is infinitely recyclable without losing its properties, making it one of the most sustainable materials available. By increasing the share of scrap in steel production, industries can make significant strides toward net-zero targets, while also reducing reliance on mining-intensive virgin iron ore.

Scaling scrap-based steel production

Despite its advantages, the transition to scrap-based steel production faces several challenges. While scrap steel availability is increasing, demand is set to rise faster. Some regions, particularly in developing economies, lack efficient scrap collection and processing infrastructure. Another concern involves impurities in scrap metal, such as copper, which can impact the quality of high-grade steel. To counter this, advanced shredding, sorting and refining technologies – such as those developed by Lindemann and its partners – ensures that scrap-based steel meets stringent industry standards.

A final factor to consider is that, while EAFs produce fewer emissions, their environmental benefit depends on electricity sources. If powered by fossil fuels, the CO₂ reduction advantage diminishes. Therefore, the shift to renewable-powered EAFs is critical.

From scrap to essential component

To meet global decarbonization goals, the share of recycled steel in production must grow. Steelmakers are already investing in innovative technologies, such as hybrid furnaces that combine hydrogen-based reduction with scrap melting. At Lindemann our metal recycling equipment is incorporating new technologies, soon to include AI-driven scrap sorting, to improve material purity.

Policymakers are also introducing incentives and regulations that encourage scrap recycling. The European Union’s Green Deal, for example, includes measures to promote circular economy principles, which will drive higher scrap utilisation in steelmaking.

Scrap metal is no longer just an industrial byproduct; it is the foundation of a more sustainable steel industry. By increasing scrap-based production, investing in cleaner energy, and improving recycling infrastructure, the steel sector can take meaningful steps toward cutting emissions and achieving global CO₂ reduction targets.

As industries race toward net-zero, one thing is clear: the future of steel is green, and scrap metal is the key to making it happen.