Muslemani, H., Ascui, F., Liang, X., Kaesehage, K., Ascui, F., Wilson, J., 2022. Steeling the race: ‘Green steel’ as the new clean material in the automotive sector. Oxford Institute for Energy Studies. OIES Paper: ET 09. March 2022. ISBN 978-1-78467-196-9.
Abstract:
This paper aims to examine consumer behaviour towards, and the willingness to adopt, ‘green steel’ in the automotive sector. Semi-structured interviews were held with experts from global, regional and country-specific industry associations and automakers. This paper appraises potential demand for green steel within different vehicle types (based both on size and powertrain) and shows that manufacturers of electric heavy-duty vehicles are most likely to be the first adopters of green steel. A case for green advanced higher-strength steels (AHSS) can also be made in light-duty passenger vehicles, which may mitigate competition from alternative lightweight materials in terms of cost and greenness (depending on source and utilization regions). This work emphasizes a need to revisit current CO2 performance regulations, engage in educational green marketing campaigns, and explore innovative market-based mechanisms to bridge the gap between relatively-low carbon abatement costs of steelmaking and high abatement costs of vehicle manufacturing.