Maersk commits to net zero steel by 2040

A.P. Moller – Maersk has joined SteelZero, a global initiative bringing together forward-looking organisations to speed up the transition to the net-zero steel industry.

Led by the international non-profit Climate Group in partnership with ResponsibleSteel, organisations that join SteelZero make a public commitment to procure, specify, or stock 100% net zero steel by 2050.

To inspire peers and others across the supply chain to follow suit, the Danish shipping giant has committed to using 100% net zero steel by 2040, with an interim target of using 50% responsibly produced steel by 2030, joining eighteen other businesses, such as Barrett Steel in the UK and compatriot Ørsted.

“Steel is an integral part of our value chain. We use it in our ships, containers, terminals, and warehouses and therefore, it is a pivotal part of our decarbonisation efforts. The steel industry is one of the largest emitters of CO2, contributing around 7% of global greenhouse gas emissions. It is imperative to find a low-carbon process for primary steelmaking to adhere to the 1.5°C pathway in this hard-to-abate industry,” explained Henriette Hallberg Thygesen, CEO of fleet & strategic brands at Maersk.

A significant number of over 700 vessels operated by Maersk are projected to be recycled in the next decade, with a large proportion being the post-panamax size ships, with steel making up approximately 90% of their weight.

“Global ship recycling volumes are projected to nearly double by 2028 and quadruple by 2033. Recycled steel will progressively be recognised as a viable raw material for steel consumers with net-zero emissions targets. At Maersk we have both strong decarbonisation ambitions and ships’ coming to end-of-life, which offer a great opportunity to reduce our Scope 3 emissions by driving circularity in the steel industry,” added Palle Laursen, senior vice president and chief technical officer at Maersk.

Source: Splash247

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