China has inaugurated its first million-tonne near-zero-carbon steel production line in Zhanjiang City, Guangdong Province, signaling a significant step in the decarbonization of the steel industry.
The facility employs an advanced hydrogen-based metallurgical electric smelting process, replacing conventional coke with hydrogen as the primary reducing agent, achieving targeted metallization rates in the direct reduced iron process while boosting overall energy efficiency through high-performance green electric furnaces.
The hydrogen-based approach reduces carbon emissions by an estimated 50 to 80 percent compared with conventional steelmaking methods. According to Baowu Steel’s Zhanjiang operation, the facility alone is projected to cut more than 3.14 million tonnes of carbon dioxide annually, equivalent to the carbon absorption capacity of approximately 2,000 square kilometers of forest. This marks a measurable advance in China’s broader climate and industrial strategy.
The project aligns with the 14th Five-Year Plan (2021–2025), a period identified as critical for driving high-quality development in the steel sector through green transformation. Between 2021 and 2024, 126 new green steel plants were certified, reflecting the industry’s sustained focus on reducing environmental impact. By the third quarter of 2025, emissions of sulfur dioxide, particulate matter, and nitrogen oxides had fallen to 0.18 kg, 0.22 kg, and 0.33 kg per tonne of steel respectively, representing reductions of 28 percent, 26.7 percent, and 36.5 percent compared with the end of 2021.
Further complementing these efforts, the China Iron and Steel Association launched an “extreme energy efficiency” initiative during the same period. In 2024 alone, the initiative generated energy savings equivalent to approximately 10.5 million tonnes of standard coal and reduced carbon emissions by around 27.5 million tonnes, comparable to the annual carbon sequestration of roughly 570 million mature trees.
The Zhanjiang near-zero-carbon line exemplifies how hydrogen-based processes and electrification can simultaneously enhance energy efficiency and cut emissions, providing a tangible blueprint for the steel sector’s ongoing decarbonization and supporting China’s strategic targets for green industrial development.
