Power sector’s steel demand to triple by 2050
Diversified miner BHP has made the case that steel, and in effect iron-ore, should also be classified as a critical mineral, given it was essential for the decarbonation of power.
Speaking at an investor day, BHP VP for market analysis and economics Dr Huw McKay noted that power generation provided less than 2% of global steel demand.
However, this was expected to triple by 2050, with McKay noting every percentage point increase in share in that year would equate to between 20-million and 25-million tonnes, depending on what was assumed for other sectors.
“The decarbonisation of power will be dominated by onshore wind and solar photovoltaic (PV), with complementary roles to be played by offshore wind, hydro and nuclear energy.
“Where pure steel intensity per megawatt of capacity is concerned, wind and hydro power are the clear standouts. Offshore wind capacity requires 190 t of steel per megawatt, and onshore capacity requires 124 t. Hydro capacity requires 161 t. Solar is less steel intensive, at 45 t per megawatt.
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