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How the steel industry is using biochar to reduce carbon emissions by 30%
Kỹ thuật 07/03/2026 11 min read

How the steel industry is using biochar to reduce carbon emissions by 30%

Biochar Việt Nam

07/03/2026

Discover how the steel industry is using biochar to reduce carbon emissions by 30%. A detailed guide to four methods, real-world case studies, and an implementation roadmap for Vietnamese businesses.

The global steel industry is facing a historic turning point. With the 2050 Net Zero commitment and growing pressure from carbon emissions regulations, steel producers are compelled to seek effective green solutions. In this context, biochar—a bio-based carbon product derived from biomass—is emerging as a breakthrough technology capable of reducing CO2 emissions in steel production by up to 30%. This article will provide an in-depth analysis of how biochar is applied in the steel industry, from the scientific basis to practical implementation processes, helping Vietnamese businesses seize this opportunity for green transformation.

How is the steel industry addressing the challenge of carbon emissions?

The Current State of CO2 Emissions in the Global Steel Industry and in Vietnam

According to data from the International Energy Agency (IEA), the steel industry accounts for approximately 7–9% of total global CO2 emissions, equivalent to nearly 2.6 billion tons of CO2 per year. This is one of the industries with the highest emissions intensity, second only to the cement and chemical industries.

In Vietnam, crude steel production stands at approximately 20 million tons per year, making the steel industry one of the country’s largest sources of emissions. Each ton of steel produced using the traditional blast furnace method emits an average of 1.8–2.0 tons of CO2This figure poses a serious challenge as Vietnam commits to achieving net-zero by 2050.

Pressure from the 2050 Net Zero commitment and the Carbon Border Adjustment Mechanism (CBAM)

The European Union’s Carbon Border Adjustment Mechanism (CBAM), which takes effect in 2026, will impose a carbon tax on imported steel products with high carbon intensity. This creates significant trade barriers for Vietnamese steel producers, who export approximately 30% of their output to the EU market.

According to estimates by the Ministry of Industry and Trade, without effective emission reduction measures, Vietnamese steel companies may have to pay additional costs $50–$100 per ton of exported steel in the form of a carbon tax. This amount is enough to wipe out the profits of many businesses.

Rising costs and competitive risks if we fail to transition to green energy

In addition to regulatory pressures, steel producers are also facing changes in customer behavior. Major automotive, construction, and electronics companies are increasingly prioritizing the use of green steel in their supply chains to meet their ESG goals.

Businesses that fail to adapt in a timely manner will face risks lose market share, difficulty accessing green financing, and a decline in corporate value. According to a McKinsey study, steel companies with strong carbon strategies are valued 20–30% higher than their competitors.

Why aren’t traditional solutions effective enough?

Traditional emission reduction methods, such as improving energy efficiency and recovering waste heat, can only reduce 10–15% of emissions. While CCS (carbon capture and storage) technology is effective, the investment costs run into the hundreds of millions of dollars, which is beyond the reach of most Vietnamese businesses.

Switching to electric arc furnaces (EAFs) that use scrap is a good direction to take, but Vietnam lacks a supply of high-quality scrap and relies on imports. This is why biochar has become a breakthrough solution—one that is both technically feasible and aligned with the resources available in Vietnam.

What is biochar, and why is it suitable for the steel industry?

Definition of biochar and the production process from biomass

Biochar is a biochar product produced through the process of pyrolysis biomass in an oxygen-deprived environment at temperatures of 400–700°C. The feedstock can include rice husks, sawdust, agricultural byproducts, corn stalks, or any other source of biomass.

The biochar production process consists of the following main steps:

  • Collection and processing of raw materials: Dry and grind the biomass
  • Pyrolysis: Fire at a temperature of 400–700°C for 2–6 hours
  • Cool and grind: Produce charcoal powder with the desired particle size
  • Quality Control: Measure carbon content, moisture content, and ash content

The chemical composition and unique physical properties of biochar

Biochar has a stable carbon structure with carbon content 70–85%, which is significantly higher than the initial biomass (40–50%). Its porous structure with a large surface area (300–500 m²/g) gives biochar excellent adsorption capacity.

Key features:

  • Heat therapy: 25–30 MJ/kg (compared to coke at 28–32 MJ/kg)
  • High heat resistance: Heat-resistant up to 1000°C
  • Low impurity content: Sulfur < 0.1%, ash 5–15%
  • Stable carbon: Does not decompose for hundreds of years

Comparing biochar with traditional coke in steelmaking

Criteria Coke Biochar Advantage
Carbon content 85–90% 70–85% Coke
Heat content (MJ/kg) 28–32 25–30 Coke
CO2 emissions per kilogram 3.2 kg 0.5–1.0 kg Biochar
Price (USD/ton) 300–400 200–350 Biochar
Origin Fossil Recreation Biochar
Carbon sequestration capacity No Yes Biochar

Although its calorific value is slightly lower, biochar makes up for it by significant environmental benefits and competitive pricing.

Dual benefit: Replacing fossil fuels + Long-term carbon sequestration

A key feature of biochar is negative carbon footprint. When biomass decomposes naturally, it releases CO2 back into the atmosphere. But when converted into biochar, the carbon is sequestered in a stable form for 100 to 1,000 years.

Every ton of biochar used in steel production not only reduce CO2 emissions by 2–2.5 tons not only by replacing coke, but also sequester an additional 2.5–3 tons of CO2 from the atmosphere. In total, the emission reduction could reach 4.5–5.5 tons of CO2 per ton of biochar - an impressive figure that few technologies can match.

4 Methods for Applying Biochar in the Steel Production Process

Method 1: Replacing coke in a blast furnace

The blast furnace is the most common method of steel production, accounting for 70% of global steel output. Coke serves as both a fuel and a reducing agent to convert iron ore into pig iron.

Mechanism of biochar application:

  • Mix biochar with coke at a ratio of 10–30%
  • Biochar provides carbon for the reduction reaction: Fe₂O₃ + 3C → 2Fe + 3CO
  • High furnace temperatures (1200–1500°C) are sufficient for biochar to function effectively

Emissions reduction effectiveness: Replacing 20% of coke with biochar could reduce 15–20% of CO2 emissions from the blast furnace. For a steel mill producing 1 million tons of steel per year, this is equivalent to a reduction of 300,000 metric tons of CO2 per year.

Challenge: The blending ratio must be adjusted to ensure that the quality of the cast iron is not compromised. Some studies indicate that the optimal ratio is 15–25%, depending on the type of biochar.

Method 2: Using biochar in an electric arc furnace (EAF)

Electric arc furnaces use electricity to melt steel scrap and produce fewer emissions than blast furnaces. However, carbon is still needed to remove impurities and adjust the chemical composition.

Mechanism of action:

  • Replacing coke/graphite with biochar in the refining process
  • Biochar helps remove oxygen and sulfur from molten steel
  • Reduced power consumption due to exothermic reactions

Effectiveness: The use of biochar in EAFs can reduce 10–15% of CO2 emissions and 5–8% of electricity consumption. This is particularly significant as Vietnam is accelerating the development of electrical steel.

Advantages: It is easier to implement than a blast furnace and does not require major equipment changes. Many EAF plants have successfully tested this with a substitution rate of 30–40%.

Method 3: Incorporating biochar into the iron ore sintering process

Sintering is the process of heating finely ground iron ore with fuel to form ore pellets of a size suitable for blast furnaces. This is an energy-intensive stage with high emissions.

Mechanism of action:

  • Mix biochar with a mixture of ore and fuel (usually anthracite coal)
  • Burning biochar releases heat and creates a reducing environment
  • The porous structure of biochar improves the gas permeability of the sintered layer

Effectiveness: Replacing 15–20% of traditional fuel with biochar helps reduce 12–18% CO2 emissions during the sintering process. The quality of the ore pellets is also improved due to their higher porosity.

Case study: Nippon Steel has tested the use of wood-based biochar in sintering, achieving a 15% reduction in emissions without affecting productivity.

Method 4: The Application of Biochar in the Treatment of Exhaust Gas and Ash

In addition to its role as a fuel, biochar also has the ability to absorb pollutants thanks to its porous structure and large surface area.

Specific applications:

  • Exhaust gas filter: Biochar absorbs SO2, NOx, and dioxins from steel furnace emissions
  • Wastewater treatment: Removal of heavy metals (Pb, Cd, Cr) from industrial wastewater
  • Ash reclamation: Mix biochar with steel slag to create an environmentally friendly building material
  • Reduces odors and dust: Biochar absorbs volatile organic compounds

Environmental impact: Although it does not directly reduce CO2, this method helps reduce other pollutants by 30–50%, improve overall environmental performance and reduce compliance costs.

Comparison of the effectiveness and feasibility of four methods

Method Reduce CO2 Investment costs Complexity Implementation timeline Recommendations
Replacing coke in a blast furnace 15–20% High High 12–18 months Large-scale, long-term plant
For use in an EAF 10–15% Average Low 6–9 months Prioritize implementation
Ore sintering 12–18% Average Average 9–12 months Suitable for integrated factories
Exhaust Gas/Ash Treatment 0–5% Low Low 3–6 months In addition to other methods

Strategic Recommendations: Vietnamese steel mills should start by Method 2 (EAF) to gain experience, and then branch out into other methods.

Scientific Basis: How Does Biochar Reduce Carbon Emissions by 30%?

Mechanisms for replacing fossil fuels to reduce direct emissions

When coke derived from coal is burned, all the carbon in the coal is converted into CO2, which is released into the atmosphere. This is fossil carbon has been isolated underground for millions of years.

In contrast, the carbon in biochar comes from biomass, which has already absorbed CO2 from the atmosphere through photosynthesis. When using biochar:

  • 50–60% carbon In biochar, it participates in metallurgical reactions, producing CO2
  • 40–50% carbon remains in a stable form in slag and byproducts
  • This stable carbon has been isolated from the atmosphere for hundreds of years

Formula for calculating emission reductions:

Emissions reduction = (Emissions from coke - Emissions from biochar) + Sequestered carbon

Specific example: Replace 1 ton of coke with 1.2 tons of biochar

  • Emissions from coke: 3.2 tons of CO2
  • Emissions from biochar: 0.8 tons of CO2
  • Carbon sequestration: 1.5 tons of CO2
  • Total emissions reduction: 3.9 metric tons of CO2 (equivalent to a 122% decrease)

The effect of biological carbon sequestration

This is the key factor that makes biochar superior to other biofuels such as ethanol or biodiesel. When ethanol is burned, all of the carbon is converted into CO2. Biochar, however, retains some of the carbon in a stable form.

According to a study by the International Biochar Institute (IBI), each ton of biochar used in industry can sequester 2.5–3.5 metric tons of CO2 equivalent over a period of 100 to 1,000 years. This is recognized in international carbon credit standards.

Isolation mechanism:

  • The aromatic carbon structure in biochar is very stable
  • Difficult to degrade by microorganisms or through chemical oxidation
  • Average half-life: 500–1,500 years

Optimizing energy efficiency in metallurgical processes

Biochar not only replaces coke but also improves the efficiency of the smelting process:

1. Increase the rate of the reduction reaction:

  • The porous structure of biochar increases the surface area in contact with the iron ore
  • The reduction reaction proceeds 10–15% faster
  • Reduce oven dwell time, save energy

2. Improve air permeability:

  • Biochar has high porosity, which helps CO gas circulate more effectively within the furnace
  • Reduce furnace pressure to increase productivity by 3–5%

3. Reduced oxygen consumption:

  • Biochar has a lower oxygen content than raw biomass
  • Reduce the amount of oxygen required for combustion

Taking all these factors into account, the use of biochar can a 5–8% reduction in total energy consumption in steel production, contributing to a reduction in emissions.

Life Cycle Assessment (LCA) and Carbon Credit Certification

To ensure that biochar actually reduces emissions, the following measures must be implemented Life Cycle Assessment (LCA) comprehensive, from biomass cultivation to use in steel furnaces.

The stages of LCA:

  1. Biomass production: Emissions from farming, fertilizers, and machinery
  2. Shipping: Emissions from logistics
  3. Pyrolysis: Energy consumption and emissions from the process
  4. For use in steel furnaces: Direct and indirect emissions
  5. Waste management: Ash, exhaust gases

According to an LCA study conducted by universities in Sweden and Japan, biochar derived from agricultural waste has a negative carbon footprint of -2.5 to -4.0 metric tons of CO2 equivalent per metric ton of biochar when used in the steel industry.

Carbon credit certification: Projects using biochar may apply for carbon credits under the following standards:

  • Verra (VCS): There is a specific methodology for biochar
  • Gold Standard: Recognition of biochar in energy production and industry
  • ISO 14064: Greenhouse Gas Measurement and Reporting Standards

Every ton of CO2 reduced can be sold as a carbon credit at a price of $10–$30 per ton, generating additional revenue for the business.

Case Study: Steel mills that have successfully implemented biochar

Project by the Swedish Steel Corporation (SSAB) - 25% reduction in emissions

SSAB, one of the largest steel companies in Northern Europe, has been running a pilot project using biochar since 2019 at its Luleå plant.

Project Information:

  • Scale: Replace 20% of coke with biochar in a blast furnace
  • Source of biochar: Sawdust and forestry byproducts
  • Capacity: 2.5 million tons of steel per year

Achievements:

  • Decrease 25% of CO2 emissions from blast furnaces (equivalent to 450,000 tons of CO2 per year)
  • The steel quality remains unchanged and meets the EN 10025 standard
  • A 12% reduction in fuel costs thanks to biochar’s lower price compared to coke
  • Receive a certificate 50,000 carbon credits per year, generating an additional $1.5 million in revenue

Lessons learned: SSAB is investing 15 million euros in the pilot phase, but the payback period is only four years thanks to fuel savings and the sale of carbon credits.

Pilot project in Japan: Nippon Steel and JFE Holdings

Japan, with its well-developed steel industry but limited natural resources, has long viewed biochar as a sustainable solution.

Nippon Steel - Kimitsu Works Project (2020–2022):

  • Using bamboo and melaleuca wood biochar in ore sintering
  • Replacement rate: 15% of traditional fuel
  • Results: 18% reduction in CO2 emissions, 5% improvement in sintering efficiency
  • Special Feature: Developing biochar granulation technology to improve uniformity

JFE Holdings - Chiba Project (2021–present):

  • Focus on electric arc furnaces
  • Using biochar made from agricultural byproducts (straw, rice husks)
  • Results: 12% reduction in emissions, 7% reduction in electricity consumption
  • Expansion: The plan will be implemented across all five EAF plants starting in 2025

Success factors: Both companies have established stable biochar supply chains with local farmers, ensuring consistent quality and reasonable prices.

Potential applications at Vietnamese steel mills (Hòa Phát, Formosa)

Vietnam has a significant advantage in biochar production thanks to its abundant agricultural biomass resources.

Raw material potential:

  • Rice husks: 7 million tons per year, capable of producing 2.1 million tons of biochar
  • Sawdust: 2 million tons per year → 600,000 tons of biochar
  • Sugarcane byproducts: 4 million tons per year → 1.2 million tons of biochar
  • Total potential: Nearly 4 million tons of biochar per year, enough to replace 30–40% of coke in the steel industry

Recommendations for Hòa Phát: With an annual production capacity of 8 million tons of steel, if Hòa Phát replaces 15% of its coke with biochar:

  • Decrease 1.2 million tons of CO2 per year
  • Save $30–40 million per year fuel costs
  • Create a market for 200,000 tons of biochar and support 50,000 farming households

Recommendations for Formosa Ha Tinh: Formosa could start with an electric arc furnace and gradually expand to a blast furnace:

  • Phase 1 (2024–2025): Pilot project producing 10,000 metric tons of biochar per year
  • Phase 2 (2026–2027): Expansion to 100,000 metric tons per year
  • Phase 3 (2028–2030): The entire plant will use 300,000 metric tons per year

Lessons Learned and Success Factors

5 key factors:

  1. Stable supply chain: Long-term contract with a biochar supplier, ensuring quality and quantity

  2. Government support: Tax incentives, support for initial investment capital, and clear carbon credit policies

  3. Technical training: Investing in R&D and staff training in biochar technology

  4. Green finance: Utilizing green bonds and preferential loans from international climate funds

  5. Brand Communication: Building a "green steel" brand to enhance product value

The Biochar Implementation Process at a Steel Mill: 5 Specific Steps

Step 1: Assess biomass sources and establish a biochar supply chain

Main activities:

a) Survey of raw material sources:

  • Identify the types of biomass available within a radius of 100–200 km
  • Estimated seasonal production and purchase prices
  • Quality assessment: moisture content, impurity content, ash content

b) Selecting a biochar production partner:

  • Find a biochar supplier with modern pyrolysis technology
  • Negotiate long-term contracts (3–5 years) with quality assurance clauses
  • Or invest in building your own biochar plant (suitable for large companies)

c) Establishing quality standards:

  • Carbon content: > 70%
  • Moisture content: < 10%
  • Ash content: < 15%
  • Particle size: 1–5 mm (depending on the application)
  • Heat value: > 25 MJ/kg

Time: 2–3 months | Cost: $50,000–$100,000

Step 2: Pilot testing and optimizing the mixing ratio

Main activities:

a) Laboratory-scale testing:

  • Analysis of the calorific value and chemical properties of biochar
  • Simulation of reduction reactions with iron ore at various temperatures
  • Determine the theoretical mixing ratio

b) Pilot test at the plant:

  • Start with a low replacement rate (5–10%)
  • Close monitoring: furnace temperature, exhaust gas composition, steel quality
  • Gradually increase the biochar content and record the changes

c) Process optimization:

  • Determine the optimal balance between emission reduction efficiency and product quality
  • Adjust the furnace operating parameters (temperature, gas flow rate, time)
  • Assessment of the impact on equipment lifespan

Time: 6–9 months | Cost: $200,000–$500,000

Step 3: Upgrade equipment and production processes

Main activities:

a) Upgrade the feeding system:

  • Installation of a separate biochar storage silo
  • Automatic weighing and blending system for coke
  • Biochar drying equipment, if necessary

b) Adjusting the combustion system:

  • Optimizing the injection point for biochar in the furnace
  • Adjust the air supply system to ensure complete combustion
  • Installation of temperature and gas composition sensors

c) Upgrading environmental treatment:

  • Enhance the dust filtration system (biochar generates more fine dust)
  • Adjust the exhaust gas treatment system if necessary

Time: 3–6 months | Cost: $1–3 million (depending on the scale)

Step 4: Train staff and establish a monitoring system

Main activities:

a) Training program:

  • Training engineers in biochar technology and emission reduction mechanisms
  • Train workers to operate the new feeding system
  • Training QC staff on biochar quality control
  • Organizing study tours to factories that have implemented the program

b) Develop standard operating procedures (SOPs):

  • Biochar Receiving and Inspection Process
  • Mixing and loading process
  • Incident Response Process
  • Equipment Maintenance Procedure

c) Monitoring and reporting system:

  • Installation of a real-time SCADA monitoring system
  • Monitor KPIs: biochar usage rate, CO2 emissions, steel quality, costs
  • Weekly/Monthly Reports for Management

Time: 2–3 months | Cost: $100,000–$200,000

Step 5: Measure, report, and verify emissions reductions

Main activities:

a) Establish a measurement system:

  • Installation of Continuous Emission Monitoring Systems (CEMS)
  • Developing a method for calculating emissions reductions in accordance with ISO 14064
  • Hire an independent firm to verify the data

b) Registration of carbon credits:

  • Prepare project documentation in accordance with Verra or Gold Standard guidelines
  • Submit your application and wait for approval (6–12 months)
  • Regular monitoring and reporting to maintain certification

c) Communications and marketing:

  • Publishing emissions reduction results on the website and in the media
  • Building a "green steel" brand for the product
  • Attend conferences on ESG and climate change
  • Use the results to attract investment and customers

Time: Continuous | Cost: $50,000–$100,000 per year

Total implementation cost: $1.5 million to $4 million Estimated payback period: 3–5 years

Challenges and Solutions in the Application of Biochar in the Steel Industry

Challenge 1: Initial investment costs and payback period

Specific challenges:

  • The initial investment cost of $1.5 million to $4 million is a major barrier for small and medium-sized enterprises
  • A payback period of 3–5 years is considered long in the manufacturing industry
  • Uncertainty regarding future carbon credit prices

Solution:

a) Access to preferential financing:

  • Borrow from the Green Climate Fund (GCF) at an interest rate of 2–3% per year
  • Issuing green bonds at a cost of capital that is 1–2% lower than that of conventional bonds
  • Request for support from ODA programs for green transition

b) Public-Private Partnership (PPP) model:

  • The government subsidizes 30–50% of the initial investment costs
  • The company is committed to reducing emissions and creating jobs

c) Adopt a step-by-step approach:

  • Start small (with a pilot project) to minimize risk
  • Use the profits from Phase 1 to fund expansion

Challenge 2: The quality and stability of the biochar source

Specific challenges:

  • The quality of biochar varies depending on the feedstock and production technology
  • Supply is unstable due to seasonal fluctuations in agriculture
  • Lack of biochar quality standards for the steel industry in Vietnam

Solution:

a) Developing national standards:

  • Proposal for the Ministry of Science and Technology to issue a Vietnamese National Standard (TCVN) on industrial biochar
  • Specify the following parameters: carbon content, ash content, moisture content, and calorific value
  • Establish a quality certification system

b) Diversifying supply sources:

  • Contracts with multiple suppliers in different regions
  • Build a 2- to 3-month supply of biochar
  • Developing biochar production technologies from various types of biomass

c) Investment in R&D:

  • Research on technologies for stabilizing biochar quality
  • Developing a rapid testing process at the factory
  • Collaborating with universities to advance technology

Challenge 3: Technical standards and legal regulations are not yet harmonized

Specific challenges:

  • Biochar has not yet been officially recognized as an alternative fuel in environmental regulations
  • There are currently no specific guidelines for calculating and verifying emissions reductions from biochar
  • Carbon credit policies in Vietnam remain unclear

Solution:

a) Policy advocacy:

  • The Vietnam Steel Association has proposed that the government issue a decree on the use of biochar
  • Include biochar in the list of recommended renewable fuels
  • Developing a national carbon credit roadmap

b) Adoption of international standards:

  • Use the Verra or Gold Standard methodology
  • Hire an international certification body to conduct a project audit
  • Participating in the Voluntary Carbon Market (VCM) during the initial phase

c) Pilot and expansion:

  • Launch a pilot project at 2–3 large factories
  • Summarizing experiences and developing technical guidelines
  • Expand this across the entire industry once a legal framework is in place

Financial solutions: Carbon credits, green bonds, government support

1. Carbon Credit:

  • Each biochar project can reduce emissions by 50,000–500,000 metric tons of CO2 equivalent per year
  • With a carbon price of $15 per ton, this generates revenue of $0.75 million to $7.5 million per year
  • Helps reduce the payback period to 2–3 years

2. Green bonds:

  • Biochar projects eligible for green bond issuance under international standards
  • The cost of capital is 1–2% lower than that of a commercial bank loan
  • Build credibility and attract ESG investors

3. Government support:

  • Tax incentives: 50% reduction in corporate income tax for the first five years
  • Interest rate subsidy: The government subsidizes 3–4% of the loan interest rate
  • Public investment: Support for the development of biochar supply chain infrastructure

Trends in the Development of Next-Generation Biochar Technology

1. Biochar pellet:

  • Compressing biochar into briquettes makes it easy to transport and use
  • Consistent quality, reduced dust and losses
  • Currently being adopted by Japanese and South Korean factories

2. Activated biochar:

  • Treating biochar with steam or CO2 to increase its surface area
  • Improve the ability to absorb impurities in exhaust gases
  • Increase product value by 50–100%

3. Metal-impregnated biochar:

  • Add Fe, Ni, or other catalytic metals to biochar
  • Increase the reduction reaction rate and lower the furnace temperature
  • The technology is currently being researched at leading universities

4. On-site biochar production system:

  • Installation of a small-scale pyrolysis furnace directly at the steel plant
  • Using waste heat from steel furnaces to pyrolyze biomass
  • Lower shipping costs and better quality control

Conclusion: Biochar—The Key to a Green and Sustainable Steel Industry

Summary of the Benefits and Potential of Biochar in Reducing Emissions

Biochar represents a breakthrough in the steel industry’s efforts to reduce carbon emissions. With its ability to reduce CO2 emissions by 25–30% Through a dual mechanism—replacing fossil fuels and sequestering carbon—biochar outperforms most other green solutions.

Key benefits:

  • Environment: Reduce CO2 emissions by 1.5–2.0 tons per ton of steel produced
  • Economy: Save 20–30% on fuel costs and generate income from carbon credits
  • Society: Creating a market for agricultural byproducts, supporting farmers
  • Strategy: Compliance with CBAM, enhancing international competitiveness

Action Plan for the Vietnamese Steel Industry

Phase 1 (2024–2025): Research and pilot program

  • 2–3 major companies (Hòa Phát, Formosa, Hoa Sen) are implementing pilot projects
  • Capacity: 5,000–10,000 metric tons of biochar per year
  • Objective: Gain experience, build a supply chain

Phase 2 (2026–2028): Expansion and Scaling Up

  • 10–15 steel mills are using biochar
  • Capacity: 100,000–200,000 metric tons of biochar per year
  • Objective: Reduce total emissions from Vietnam’s steel industry by 5–10%

Phase 3 (2029–2030): Widespread Adoption and Standardization

  • The industry as a whole uses 500,000–800,000 tons of biochar per year
  • Biochar is becoming the standard in green steel production
  • Goal: Reduce emissions by 20–25% compared to the 2020 baseline

Call for Interdisciplinary Collaboration and the Role of the Government

The success of biochar in the steel industry requires close cooperation among multiple parties:

Government:

  • Issue policies to encourage the use of biochar
  • Financial support for pioneering projects
  • Establishing a national carbon market
  • Investing in R&D and workforce training

Steel companies:

  • Proactively invest in green technology
  • Partnering with farmers to build a biochar supply chain
  • Sharing industry expertise and technology

Farmers and biochar companies:

  • Ensure a consistent supply of high-quality biochar
  • Utilizing modern manufacturing technology
  • Compliance with environmental standards

Research organization:

  • Developing biochar technology suitable for Vietnam's conditions
  • Training of specialists and technicians
  • Providing consulting and certification services

Vision 2030: Vietnam’s Steel Industry Aims for Net Zero

By utilizing biochar alongside other green technologies (hydrogen, electrochemistry, CCS), the Vietnamese steel industry is fully capable of achieving its goals reduce emissions by 40–50% by 2030 and aiming for net-zero by 2050.

Biochar is not just a technical solution, but also strategic opportunity to help the Vietnamese steel industry transition from volume-based production to high-value-added production, and from standard steel to high-grade green steel.

Now is the perfect time for Vietnamese steel companies to take action. Those who lead the way will gain a significant competitive advantage, while those who lag behind risk being left out of the global supply chain.

Take action today to build a green, sustainable steel industry for future generations!


References:

  • International Energy Agency (IEA) - Steel Technology Roadmap
  • International Biochar Initiative (IBI) - Biochar Standards
  • Vietnam Steel Association - 2023 Annual Report
  • Research by SSAB, Nippon Steel, and JFE Holdings
  • ISO 14064 - Greenhouse Gas Accounting and Verification

Contact us for a consultation: For detailed advice on the application of biochar at your steel plant, please contact the Vietnam Steel Association or organizations specializing in green technology.

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