A Breakthrough in Green Steelmaking

As a long-term distributor of Baosteel, Baohui Steel takes pride in championing sustainable steel solutions worldwide. The recent milestone at Baosteel Zhanjiang Steel—the full commissioning of China’s first million-ton near-zero carbon steel production line—marks a revolutionary leap for the industry and aligns with our commitment to distributing low-carbon steel products. Here’s why this achievement matters for global sustainability.

A Breakthrough in Green Steelmaking

The newly commissioned near-zero carbon production line is a core demonstration project by Baosteel, showcasing China Baowu's leadership in low-carbon transition. It relies on the innovative Hydrogen Metallurgy Electric Smelting Process (HyRESP), achieving full integration of a short-process route for producing zero-carbon, high-grade steel plates. This not only solidifies China Baowu's role as a leader in the modern low-carbon metallurgy chain but also demonstrates the Chinese steel industry's practical action and innovative example in global green development.

The production line combines the previously operational million-ton hydrogen-based shaft furnace—the first of its kind in China—with newly constructed electric arc furnaces and continuous casting lines. The new facilities, commenced in April 2024, were delivered through efficient collaboration and digital construction models, ensuring full control over safety, quality, and schedule. The hydrogen-based shaft furnace, commissioned in late 2023, uses hydrogen instead of carbon as a reducing agent, providing a new path for the industry to break away from deep reliance on fossil fuels. It has successfully validated high-hydrogen smelting conditions, producing direct reduced iron (DRI) that meets target metallization rates, offering a vital testing platform and engineering model for the industry's green transition.

Key Features and Environmental Impact

Upon full operation, the near-zero carbon line will use "hydrogen-based shaft furnace DRI + scrap steel" as primary feedstock to produce low-carbon emission slabs, which are then rolled into low-carbon and near-zero carbon steel products using existing facilities. This completes the "Hydrogen Shaft Furnace Reduction – Efficient Electric Arc Furnace Smelting – Low-Carbon Rolling" process. Compared to a traditional blast furnace-converter route of equivalent scale, the project is estimated to reduce carbon emissions by 50% to 80%, potentially cutting over 3.14 million tons of CO2 emissions annually. This marks a solid step for Baosteel in building a sustainable low-carbon product portfolio and responding to downstream green supply chain demands.

In recent years, Baosteel has established green and low-carbon development as its core strategy, comprehensively implemented at Zhanjiang Steel. The plant has pursued "ultimate energy efficiency" through various measures, consistently recognized as a national leader in energy and water efficiency. Under Baosteel's green energy blueprint, Zhanjiang Steel has actively deployed solar power, with on-site green electricity capacity exceeding 124 MW and planned annual generation of 150 GWh. It is also advancing onshore wind projects and has invested in a 400 MW offshore wind power development, aiming to build a complete "Wind-Power-Hydrogen" green energy supply chain to provide stable renewable energy for the zero-carbon production line.

Our Commitment at Shanghai Baohui

As a longstanding distributor of Baosteel, Shanghai Baohui is dedicated to supplying green and low-carbon steel products worldwide—from zero-carbon hot-rolled coils to green silicon steel. This milestone at Zhanjiang Steel represents not only Baosteel's resolve for green transformation but also our commitment to contribute within this green wave. We are eager to connect, exchange, and collaborate with all partners interested in sustainable steel solutions.

Join the green steel revolution. Contact Baohui Steel to learn more about our sustainable product portfolio.