Decarbonizing steel — eaf (electric arc): the honest pathway

Electric-arc steelmaking melts scrap with electricity: direct (Scope 1) emissions drop to ≈0.4 t/t — graphite electrodes, natural-gas burners, lime calcination — and the bigger lever moves to Scope 2: the carbon intensity of the grid that powers the furnace.

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Cost exposure

What one t steel carries, 2026 → 2034

Year	Free allocation (EU)	Payable carbon cost	Annual bill (per 100,000 t steel)
2026	97.5%	€0.77 / t steel	€77,400
2030	51.5%	€15.02 / t steel	€1,501,560
2034	0.0%	€30.96 / t steel	€3,096,000

At EUA €77.4 (11 Jun 2026) and ≈0.4 t CO2/t steel direct (scrap route; worldsteel). EU ETS industry schedule; exporters under CBAM follow the mirrored phase-in. Power sectors pay 100% from day one.

⬇ This table + pathway (CSV)🖨 PDF for management

📦 Steel — EAF (electric arc) is a CBAM sector: exports to the EU pay the border price on the mirrored phase-in — see the CBAM guide and the no-carbon-price countries: Saudi Arabia, UAE, Qatar, Oman, Egypt.

The pathway, ranked

Reduction measures for steel — eaf (electric arc)

Low-carbon electricity (PPA / grid)−50%

Scrap preheating with off-gas (Consteel/shaft)−8%

Oxyfuel & burner optimisation−5%

Ladle & tundish insulation discipline−3%

Biocarbon instead of fossil charge carbon−10%

Indicative reduction potential of each measure against the relevant emissions share (sources: IEA industry roadmaps, sector associations — see each measure page). Measures stack but don't simply add.

The fast tonnes

Heat losses you can cut this budget year

EAF shops are electric but not cold: ladle preheaters, tundish heating and the steam side waste gas; ladle-cycle heat retention is a measured saving — better-insulated ladles need less superheat per heat, cutting both electricity and gas. Removable covers fit the maintenance rhythm of a melt shop where fixed lagging never survives.

Method: ASTM C680 / ISO 12241 surface energy balance — the same engine as our public calculators. Typical removable-insulation effect across hot-process plants: 2–5% of fuel-related CO2, payback up to 2 years.

Context

How steel — eaf (electric arc) compares (t CO2 per unit)

Hydrogen production9 t/t H2

Ammonia & fertilizers2 t/t NH3

Steel — BF-BOF (integrated)1.9 t/t steel

Aluminium1.6 t/t Al

Lime1.2 t/t lime

Petrochemicals1 t/t HVC

Power — coal0.95 t/MWh

Steel — EAF (electric arc)0.4 t/t steel

Direct-emission intensities, typical published values per industry page — units differ by product; see each page for sources.

FAQ

Steel — EAF (electric arc) & carbon, answered

Is EAF steel low-carbon?

Direct emissions are ~5× lower than the integrated route (≈0.4 vs 1.9 t/t). Total footprint depends on the grid: an EAF on a clean grid is the lowest-carbon bulk steel available today.

Why does CBAM matter for EAF exporters?

CBAM counts embedded emissions — an EAF mill on a coal-heavy grid carries high indirect emissions. Verified plant-specific data (vs default values) is usually the EAF exporter's biggest CBAM saving.

Where does an electric melt shop lose heat?

Ladle and tundish cycles, preheaters and the steam system. Ladle insulation and lid discipline reduce required tap temperature — a direct kWh/heat saving every melt.

How this page is built: heat-loss figures follow ASTM C680 / ISO 12241 (the method behind our public calculators); facility emissions from Climate TRACE & EU ETS verified data across 30,000+ industrial sites; the 2026–2034 schedule is Regulation (EU) 2023/956, not a forecast. Published by Inzonex — manufacturer of modular removable insulation (UK Patent GB2508992.1). Spotted an error? Tell us — we correct on evidence.