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China Commissions First Million-Tonne Near-Zero Carbon Steel Line

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China 24 Dec 2025 03:30 PM IST Chinadaily.com

China has commissioned its first million-tonne near-zero-carbon steel production line in Zhanjiang, Guangdong, positioning the project as a milestone in the sector’s low-carbon transition. 

According to the report, the line uses a hydrogen-based metallurgical electric-smelting process, replacing traditional coke with hydrogen as the primary reducing agent. A hydrogen-based shaft furnace produces direct reduced iron (DRI) that meets targeted metallization rates, while green electric furnaces are used to improve overall energy efficiency. 

Compared with conventional blast-furnace routes, the new process is expected to cut carbon emissions by 50% to 80%. Project staff at Baowu Steel’s Zhanjiang operation said the line could reduce carbon emissions by more than 3.14 million tonnes annually, which the report equates to roughly 2,000 sq km of forest in carbon-sequestration terms. 

The development aligns with China’s broader green-steel push under the 14th Five-Year Plan (2021–2025), which the report describes as a critical window for accelerating industrial decarbonisation.