Hydrogen, recycling and AI are reshaping European steel production

Across Europe, major investments in low-emission steel production have slowed because of high costs, energy prices, raw material availability, global overcapacity in steel and uncertainty over emissions regulation.

“European steel production is undergoing a major transformation. The next stage in the industry’s development will not be based on a single breakthrough, nor on hydrogen alone. It will consist of many simultaneous changes in which new energy solutions, circular economy and digitalisation are closely connected. Together, they will determine how quickly low-emission steel production can become more widely adopted in Europe,” says Professor Timo Fabritius from the Process Metallurgy research unit at the University of Oulu. “Finland and Sweden are among the first countries where these changes are genuinely being taken to industrial scale.”

Future production can no longer rely only on the highest-grade ore and the cleanest scrap. This is why European steel plants are increasingly becoming circular economy hubs for raw materials. “Steelmaking slags contain significant amounts of raw materials whose potential is still partly untapped,” says Professor Ulla Lassi from the Sustainable Chemistry research unit at the University of Oulu.

In the future, researchers aim to recover valuable substances from steel slags, including vanadium, which the EU classifies as a critical raw material. This could also help reduce Europe’s dependence on imported raw materials.

Steel is, in principle, highly recyclable. In practice, however, the composition of recycled raw materials must always be determined, and impurities such as copper and zinc must be controlled to ensure the quality of the steel produced.

Researchers will soon pilot globally distinctive steel powders produced through hydrogen-based reduction for use in metal 3D printing of demanding tool components. The challenge is to make the new solutions work efficiently in practice and at industrial scale. In new research projects, the University of Oulu is developing solutions that can help secure the competitiveness of low-emission European steel in the coming years. The university leads and participates in several EU-funded projects lasting three to four years, with project shares ranging from EUR 140,000 to EUR 2 million.

Research projects seek practical solutions for the steel industry

• Hydrogen replaces coal. The ARES, S2TARSTEEL and HyComAt projects are developing hydrogen-based production methods that can replace traditional coal-based processes and significantly reduce carbon dioxide emissions from steel production.
• More scrap can be used. The ESCALATE project is developing ways to make greater use of lower-quality recycled scrap and remove impurities such as copper and zinc.
• Valuable materials are recovered from slag. The ECONOVA project studies how critical raw materials, including vanadium, and other valuable substances can be separated from steelmaking slags.
• Steel is turned into 3D printing materials. The S2TARSTEEL project is developing a production chain in which iron concentrates are converted through hydrogen-based reduction into steel powders for 3D printing of demanding tool components.
• AI detects casting defects. The NextGenCAST project is developing systems based on artificial intelligence, measurements and process models to predict quality problems already during steel production.