Toward COP31: Tosyalı’s Journey Toward Low-Carbon Steel
The future of steel is shaped not only by how much is produced, but also by how it is produced. While quality, reliability, and delivery performance remain critical in global markets, the carbon intensity of production is emerging as a new competitive indicator. As COP31 approaches, the transformation of energy-intensive sectors ranks among the most important items on the climate agenda.
Tosyalı’s journey toward low-carbon steel is not based on a single project or target date. It encompasses a multi-layered transformation ranging from production technologies to energy supply, and from scrap utilization to process efficiency. At the core of this journey lies the goal of using resources more efficiently while expanding production capacity and reducing the carbon intensity of steel.
Why Is the Shift to Low-Carbon Steel Important?
Steel is one of the essential materials needed to build a low-carbon economy—from renewable energy plants to power grids, and from rail systems to electric vehicles. At the same time, steel production requires high temperatures, intensive energy use, and large-scale movement of raw materials. This dual nature makes steel both a key component of climate solutions and one of the priority sectors for the transition.
Globally, steel producers are turning to electric arc furnaces (EAF), higher scrap utilization, renewable electricity, and next-generation reduction technologies to reduce energy consumption and emission intensity. According to 2024 data from the World Steel Association, while energy intensity stands at 23.88 GJ per metric ton of crude steel and CO₂ emission intensity at 2.34 metric tons in the BF-BOF route, these figures are 9.84 GJ and 0.69 metric tons of CO₂, respectively, in the Scrap-EAF route, which relies primarily on scrap. This difference highlights why the use of scrap and electricity-based production routes is becoming increasingly important in low-carbon steel production. Although the pace of this transition varies depending on energy infrastructure, access to raw materials, and regional market conditions, the industry shares a common goal: to move toward production models that are more efficient, traceable, and have lower emission intensities.
The Role of Technology in Tosyalı’s Transformation
Tosyalı integrates technology and digitalization into its production processes alongside energy efficiency and emissions reduction. The company’s sustainability report states that artificial intelligence algorithms are utilized to digitally monitor business processes and determine optimal operating levels; these applications aim to reduce emissions and conserve energy, particularly in inventory and shipping processes. In addition, Industry 4.0 applications, data analytics, and smart production systems—which enable more precise monitoring of production lines, evaluation of process performance, and optimization of resource usage—constitute a key part of Tosyalı’s technology-driven production approach.
The Quantum Electric Arc Furnace at Tosyalı Iron and Steel’s facilities is one of the strongest examples of this approach. Powered by electricity, the system enables the reintroduction of scrap into production while supporting an efficient production structure through advanced process control. The increasing use of renewable electricity further strengthens this technology’s potential for reducing emissions.
How Is the Electric Arc Furnace Changing Steel Production?
Steel is produced in an electric arc furnace using high temperatures generated by electrical energy. Scrap is one of the key raw materials in the production process. In this way, steel products that have reached the end of their useful life can be transformed back into economic value. This process reduces the need to produce new raw materials—starting with mining—while bringing the circular economy directly into the production process.
The environmental impact of EAF production depends on the source of the electricity used and the composition of the raw materials. As the share of renewable sources increases, indirect emissions from electricity generation decrease. However, it is not accurate to claim an absolute superiority in quality between the EAF and the blast furnace. In both production routes, quality is determined by process control, metallurgical practices, raw material composition, and product standards.
How Does Renewable Energy Support Low-Carbon Steel?
In order for the low-carbon potential of electric arc furnaces to be reflected in production, the electricity supply must be transformed. The share of renewable energy in the grid, on-site generation capacity, and energy efficiency collectively determine overall performance. Solar energy is one of the key options that enables production facilities to meet a portion of their electricity needs from renewable sources.
Tosyalı’s solar energy capacity, exceeding 300 MWp, integrates renewable energy into its production strategy. This capacity diversifies the energy supply while contributing to the reduction of emissions resulting from electricity consumption. The convergence of the Quantum EAF and solar energy investments within the same production approach demonstrates a transformation model in which technology and energy complement each other.
Why Is Scrap Steel a Strategic Raw Material?
Steel is a material that can be remanufactured while largely retaining its physical properties. For this reason, scrap is viewed not merely as waste but as a strategic secondary raw material. The collection, sorting, and routing of scrap to appropriate production processes affect both the use of natural resources and energy requirements.
Tosyalı’s experience in scrap-based production is grounded in the large-scale implementation of circular production. Monitoring raw material quality and ensuring that different types of scrap are routed to the correct production lines play a decisive role in maintaining product performance. Thus, circularity becomes a natural part of production planning rather than an environmental project separate from quality objectives.
How Is Energy Efficiency Being Implemented in the Field?
At Tosyalı, energy efficiency is addressed through concrete initiatives ranging from process optimizations on the production line to the reuse of waste heat. According to the company’s 2022 Sustainability Report, over 100 projects are underway to reduce steam, electricity, and natural gas consumption. In one such initiative—the “Steam Production from Waste Heat of the Tosyalı Filmaşin Annealing Furnace” project—the energy from exhaust gases emitted by the furnace is recovered using a specially designed waste heat boiler. Thanks to this system, an average of 9 metric tons of steam per hour is produced for use at the Tosyalı Toyo facility, thereby reducing the natural gas consumption required for steam production.
Energy efficiency initiatives contribute not only to more effective process management but also to reducing the carbon intensity of production. In Tosyalı’s Turkish operations, greenhouse gas intensity fell from 0.19 tCO₂e per metric ton in 2020 to 0.14 tCO₂e in 2022. The company aims to extend this transformation across its entire production line by integrating energy efficiency projects with renewable energy investments, automation-supported process management, and continuous improvement initiatives.
For Which Sectors Is Low-Carbon Steel Important?
Automotive manufacturers, home appliance brands, energy companies, and the construction sector are placing greater emphasis on the carbon performance of the steel they use as they work toward their emission targets. The total carbon footprint of a vehicle, machine, or energy facility is determined not only by its use but also by the materials used in its production. For this reason, steel procurement plays a key role in companies’ value chain transformation.
Tosyalı’s broad product portfolio and supply experience spanning various sectors enable the company to closely monitor this shift in customer expectations. The development of low-carbon production capacity helps customers move closer to their sustainability goals without compromising product performance. As a result, environmental performance becomes a shared value between the manufacturer and the customer.
Why Is Carbon Footprint Data Becoming Part of the Product?
The carbon intensity of steel is influenced by multiple factors, including the energy used in production, raw material composition, process efficiency, and logistics. Regular monitoring of these factors reveals changes in product and facility performance over time. The reliability of emissions data is crucial for enabling customers to evaluate different product options and for manufacturers to direct their investments to the right areas.
The importance of product emissions data in international trade is also growing. The European Union’s Carbon Border Adjustment Mechanism makes the embedded emissions of products a visible part of trade processes. During this period, companies that regularly monitor production data, transform their energy mix, and provide reliable information to their customers are achieving a stronger position in global markets.
How Might COP31 Impact the Transformation of the Steel Industry?
COP31 is a global gathering where common challenges facing low-carbon industrial investments will be addressed. Energy infrastructure, climate finance, access to technology, and common measurement approaches directly impact the pace of transformation in the steel sector. The international dialogue to be established in Antalya will provide an opportunity to more closely assess the expectations between producing countries and consumer markets.
From Turkey’s perspective, this agenda is closely linked to the future of industrial and export policies. Our country’s production capacity and renewable energy potential could enable it to play a stronger role in low-carbon supply chains. Tosyalı’s production technologies and energy investments stand as concrete examples of the value that Turkish industry can create in this transformation.
The Next Phase of Tosyalı’s Journey Toward Low-Carbon Steel
Low-carbon steel represents a continuously evolving production journey rather than a finished product category. The growth of renewable energy capacity, advances in process efficiency, the strengthening of scrap supply systems, and the maturation of new technologies constitute the various stages of this journey. These developments, combined with appropriate technology and energy conditions, can contribute to reducing carbon intensity per unit of production
Tosyalı continues to make investments that align its current production capacity with the demands of the future. The Quantum EAF, solar energy capacity exceeding 300 MWp, experience in scrap-based production, and efforts to improve resource efficiency form the foundation of this journey today.
How Are Product Quality and Carbon Performance Progressing Together?
Producing steel under low-carbon conditions does not mean compromising on the mechanical and chemical properties required by its intended applications. The automotive, energy, construction, and machinery sectors demand different levels of strength, formability, and surface properties. Regardless of the production route, the steel must meet these standards. The success of this transformation depends on ensuring that improvements in carbon performance go hand in hand with product reliability.
Tosyalı’s production expertise ensures that process parameters and raw material composition are managed according to the target product. Advanced technologies such as the Quantum EAF support precise process control, while quality laboratories and production teams continuously monitor product properties. This structure enables improvements in energy and resource efficiency to advance in tandem with product performance.
How Does the Logistics Structure Affect the Carbon Footprint?
The environmental impact of steel production does not end at the factory gates. The transportation of raw materials to the facility and the delivery of the final product to the customer account for a portion of the total carbon footprint. The proximity of production sites to markets, port and rail connections, transportation capacity, and loading efficiency all influence logistics-related energy consumption.
Tosyalı’s production structure across different regions and its port infrastructure contribute to more efficient planning of raw material and product flows. Bringing production closer to demand centers can optimize transportation distances and lead times. Thus, the low-carbon steel journey extends across the entire production network, not limited solely to furnace technology and the power source.
How Will Next-Generation Technologies Affect Steel Production?
Direct hydrogen reduction, energy storage, AI-powered process control, and carbon capture solutions are on the steel industry’s future agenda. Each of these technologies has different energy, infrastructure, and cost requirements. While some are advancing on a commercial scale, others are still in the pilot phase. The industry’s transformation depends on these solutions achieving both production reliability and economic viability.
While Tosyalı leverages the efficiency potential offered by current technologies, it also monitors next-generation solutions from a production perspective. It is crucial that technologies set to be implemented in the future are compatible with today’s infrastructure, that the energy system is prepared for this, and that employee competencies are developed. This approach ensures that the low-carbon transition integrates short-term steps with a long-term technology vision.
Transformation Together with Steel Users
The growth in demand for low-carbon steel is shaped not only by producers but also by the decisions of steel-consuming industries. Customers’ focus on material efficiency in product design, along with their inclusion of recycled content and emissions data in their purchasing criteria, is accelerating the transformation of the market. Long-term supply relationships help producers plan large-scale technology investments under more predictable conditions.
Through the relationships it has established with customers across various sectors, Tosyalı brings together product performance and environmental expectations within the same development process. The expansion of low-carbon production capacity contributes to customers’ own value chain goals while preserving steel’s reliability and durability as a material. This shared transformation is making the supply chains of the future more transparent and resilient.
How Does Low-Carbon Steel Present an Opportunity for Turkey?
Thanks to its robust steel production infrastructure, export experience, and renewable energy potential, Turkey can secure a stronger position in low-carbon supply chains. Proximity to the European market, short delivery times, and a wide product range constitute its current competitive advantages. The transformation of production technologies and the energy mix can ensure that these advantages are maintained even under new carbon-focused trade conditions.
Tosyalı’s investments in technology and renewable energy demonstrate how Turkey’s capacity in this field translates into tangible results on the production floor. The development of large-scale steel production in conjunction with solar energy, electric arc furnaces, and the use of recycled raw materials contributes to our country’s transformation from merely a steel exporter into a hub offering low-carbon production capabilities.
The fact that COP31 will be held in Antalya is significant in terms of bringing Turkey’s industrial sector’s capacity for this transformation to the international agenda. The technological expertise and production scale achieved in the steel sector can generate broader economic value when supported by energy, financing, and trade policies. Tosyalı’s journey toward low-carbon steel demonstrates how this opportunity can be transformed into production capacity through long-term investments.
Frequently Asked Questions
What is low-carbon steel?
Low-carbon steel refers to steel produced with a lower emissions intensity compared to traditional production methods.
Why is the electric arc furnace important?
The electric arc furnace enables the recycling of scrap into new production and, when combined with low-carbon electricity, contributes to emissions reduction.
Is EAF steel of higher quality than blast furnace steel?
No. Product quality does not depend solely on the type of furnace; raw materials, process control, metallurgical practices, and product standards are all determining factors.
How does solar energy reduce the carbon footprint of steel production?
By sourcing a portion of the electricity used in production from renewable sources, it reduces indirect emissions resulting from electricity consumption.
What are the key elements of Tosyalı’s low-carbon production approach?
Quantum EAF technology, over 300 MWp of solar energy capacity, scrap-based production, and ongoing energy efficiency initiatives form the core elements of this approach.
Conclusion: Low-Carbon Steel Production Is Shaping the Future
Energy investments, advanced production technologies, the use of scrap, and efficiency initiatives form the current production infrastructure for low-carbon steel.
The development of this infrastructure also strengthens steel’s strategic role in the energy transition. Producing the steel needed for renewable energy facilities, power grids, transportation systems, and durable structures with a lower carbon intensity simultaneously contributes to climate goals across various sectors. Tosyalı’s scale of production enables this impact to reach a broad network of products and customers. Thus, the transformation that began on the production floor is creating a broader and more lasting impact across all value chains where steel is used.
As Tosyalı, we continue to advance our journey toward low-carbon steel by aligning our production capacity with environmental performance within a single strategy; we are further developing our production structure—which is evolving through technology and renewable energy—while preserving the value that steel brings to modern life.
