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Transition Pathways for Low-Carbon Steel Manufacture in East Asia: The Role of Renewable Energy and Technological Collaboration

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  • Weiyi Jiang

    (Graduate School of International Studies, Yonsei University, Seoul 03722, Republic of Korea)

  • Taeyong Jung

    (Graduate School of International Studies, Yonsei University, Seoul 03722, Republic of Korea)

  • Hancheng Dai

    (College of Environmental Science and Engineering, Peking University, Beijing 100871, China)

  • Pianpian Xiang

    (Institutes of Science and Development, Chinese Academy of Sciences, Beijing 100190, China)

  • Sha Chen

    (Faculty of Environment and Life, Beijing University of Technology, Beijing 100124, China)

Abstract

As the core region of global steel production and consumption, the zero-carbon transition of China, Japan, and South Korea is crucial for global climate goals and industrial chain sustainability. Hydrogen-based direct reduction iron (H-DRI) production, powered by renewable energy, is a promising pathway for reducing carbon emissions. This study compares the competitive dynamics of hydrogen-based steel production in China, Japan, and South Korea, with a particular focus on the levelized cost of energy (LCOE), levelized cost of hydrogen (LCOH), and levelized cost of steel (LCOS) as key metrics for evaluating the economic viability of green hydrogen-based steel production. And then compares and analyzes the competitiveness of China, Japan, and South Korea in hydrogen-based steel production, focusing on the role of green hydrogen and renewable energy in shaping the future steel industry. This study examines the impact of technological advancements, resource endowments, and policy support on H-DRI production. It highlights the importance of offshore wind power in Japan and South Korea, where its development plays a key role in reducing the cost of green hydrogen production and providing a stable electricity supply for H-DRI production. However, the high capital expenditures (CAPEXs) and labor costs associated with offshore wind power in these countries make importing relevant technologies and products from China a more cost-effective option. This study also explores the strategic importance of international cooperation and technology transfer, emphasizing the potential for China, Japan, and South Korea to strengthen bilateral collaboration in green hydrogen and H-DRI technologies. Such cooperation supports the region’s steel decarbonization efforts and enhances its global competitiveness. The integration of offshore wind power and hydrogen production technologies offers new opportunities for energy cooperation in East Asia, with China playing a key role in providing low-cost green energy solutions.

Suggested Citation

  • Weiyi Jiang & Taeyong Jung & Hancheng Dai & Pianpian Xiang & Sha Chen, 2025. "Transition Pathways for Low-Carbon Steel Manufacture in East Asia: The Role of Renewable Energy and Technological Collaboration," Sustainability, MDPI, vol. 17(10), pages 1-14, May.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:10:p:4280-:d:1651756
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    References listed on IDEAS

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    5. Shaojie Song & Haiyang Lin & Peter Sherman & Xi Yang & Chris P. Nielsen & Xinyu Chen & Michael B. McElroy, 2021. "Production of hydrogen from offshore wind in China and cost-competitive supply to Japan," Nature Communications, Nature, vol. 12(1), pages 1-8, December.
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