Electric arc furnaces use high-voltage electricity to create arcs between graphite electrodes, generating temperatures of 1,500-1,800°C to melt scrap steel. Direct reduced iron (DRI) processes use hydrogen or natural gas to remove oxygen from iron ore without coking coal. Electric furnaces can be powered entirely by renewable electricity eliminating coal dependence. Advanced process control optimizes electricity consumption and steel chemistry.
Eliminates 85-95%[5] of steelmaking emissions when powered by renewable electricity, utilizes recycled scrap steel supporting circular economy principles, and provides flexibility to adjust production based on electricity availability. EAF steel production requires 50-75%[4] less energy than blast furnaces. The technology enables distributed steel production near demand centers.
Requires consistent scrap steel supply which may be limited in some regions, faces higher electricity costs than coal in many markets, and produces different steel grades than blast furnace methods. Substantial electrical infrastructure needed for large-scale operations. Transition requires significant capital investment and retraining.