Towards Climate-Neutral Steel: Life Cycle Assessment of the Steel Value Chain

How can steel production become climate-neutral and circular? This project uses Life Cycle Assessment (LCA) to evaluate environmental impacts across the steel value chain and identify pathways towards sustainable and fossil-free steel production.

Project Overview

The project develops and applies Life Cycle Assessment (LCA) methodology to analyse the environmental performance of the steel value chain. The research adopts a systems perspective, covering raw material extraction, steel production processes, recycling flows and end-of-life scenarios.

By comparing alternative technological pathways — including hydrogen-based steelmaking and circular material strategies — the project evaluates carbon reduction potential, environmental trade-offs and risks of burden shifting between impact categories.

The results provide decision support for industry, policymakers and other stakeholders involved in the transition towards fossil-free and circular steel production.

Objectives

• To apply Life Cycle Assessment (LCA) to the steel value chain
• To compare alternative low-carbon steel production pathways
• To assess environmental trade-offs and potential rebound effects
• To support the transition towards climate-neutral and circular steel production

Methodology

The project applies ISO-compliant Life Cycle Assessment methodology to evaluate environmental impacts across the full life cycle of steel products. Scenario modelling is used to compare conventional and emerging steel production technologies, including fossil-free and circular solutions.

The analysis considers multiple environmental impact categories to ensure that emission reductions in one stage do not lead to increased impacts elsewhere in the system.

Project Information

Project period: 2024–2028

Project partners:

• Royal Institute of Technology (KTH)
• Luleå University of Technology (LTU)
  
• SSAB
• LKAB
• Jernkontoret

Funding:

• Just Transition Fund
• Swedish Agency for Economic and Regional Growth