The production capacity of the new line will be 1 million tons

China has completed construction of its first near-zero carbon steel production line with a capacity of 1 million tons in Zhanjiang (Guangdong Province), according to CGTN.

This production line, owned by Baowu Steel, uses an advanced hydrogen-based reduction process and electric arc furnace.

It is noted that direct reduced iron (DRI) produced in a hydrogen-based blast furnace has achieved its metallization targets, while high-efficiency electric furnaces improve overall energy utilization. Compared with traditional processes, the line can reduce carbon emissions by 50-80%.

The project is in line with the country’s 14th Five-Year Plan (2021-2025), a period identified as critical for promoting high-quality development of the steel sector through green transformation. Between 2021 and 2024, 126 new green steel plants were certified in China.

In addition to these efforts, the China Iron and Steel Association (CISA) launched an “extraordinary energy efficiency” initiative during the same period. In 2024 alone, it achieved energy savings equivalent to approximately 10.5 million tons of standard coal and reduced carbon emissions by approximately 27.5 million tons.

It should be noted that China is taking a measured approach to rebuilding its steel industry, improving prospects for high-end companies while avoiding steps that would significantly reduce steel supplies.