“For those who add up the market worth of all of the steelmakers on this planet, it doesn’t attain a trillion.”
In response to Pimenta, the excellent news is that at this time there are not any technological challenges in producing zero-carbon vitality.
“Pure gasoline, whether or not for a partial discount in a transitional course of, and hydrogen can be found. The problem is scaling up and decreasing prices. Hydrogen at this time most likely prices twice what it ought to for us to start out contemplating hydrogen within the steelmaking manufacturing course of,” he stated.
In Pimenta’s view, the adoption of zero-carbon applied sciences is more likely to be asymmetrical and fairly gradual.
“Some international locations which can be able to transitioning will accomplish that extra shortly. For instance, the US, with all its assist and subsidies, will transfer sooner. China, then again, will most likely take a bit longer; they nonetheless have a comparatively new industrial fleet and infrastructure.”
Pimenta additionally highlighted the position of intermediate options, reminiscent of carbon seize.
As well as, the best way international locations tax carbon may even be important.
“Carbon tax is essential as a result of, in a approach, it’ll direct capital allocation and supply incentives for producers.”
“There’ll come a time if you’ll should pay, for instance, to promote a carbon-intensive pellet to Europe, and this may drive corporations to think about options like briquettes, which have a smaller carbon footprint.”