• 5 MIN READ

State of Play: Iron and Steel

The Industrial Innovation Initiative’s October 2025 plenary featured leaders from the iron and steel sector, who shared valuable insights on progress, challenges, and opportunities. Steel is essential to United States (US) national economic security. It is the backbone of critical infrastructure, supporting nearly two million American jobs directly and indirectly. As the most easily recycled material, steel is central to a circular economy. Its durability, flexibility, and reusability make it a vital component of modern life. Iron and steel are used in vehicles, bridges, buildings, appliances, batteries, and more.

Here are a few high-level takeaways from the conversation:  

US vs. Global Greenhouse Gas (GHG) Production: The US is a global leader in efficient steel production. The global steel industry accounts for approximately eight percent of total global greenhouse gas emissions, while the US steel sector accounts for roughly one percent of total US emissions. The American steel industry is the cleanest and most energy-efficient among the world’s leading steel industries, producing steel with lower carbon dioxide emissions intensity than the other major steel-producing countries. One reason for this is that over 70 percent of US steel is produced via electric arc furnaces (EAFs), which typically have lower direct emissions than blast furnace-basic oxygen furnaces (BF-BOF), which produce the remainder of US steel.

Excess Capacity: Global overcapacity is a persistent and growing challenge for the American steel industry. Due to foreign government subsidies and other trade-distorting policies, the OECD estimates global overcapacity in the steel industry to be 602 million metric tons in 2024 and is forecast to grow to 721 million metric tons by 2027. From 2000 to 2024, annual Chinese raw steel production increased by approximately 880 million metric tons, a volume over 10 times greater than the total crude steel production in the US in 2024. When global production capacity exceeds demand, it puts downward pressure on the competitiveness of domestic industries. Much of the excess supply is produced in countries where steel is produced with lower production costs and carbon efficiency standards than comparable products made in the US. A significant share of this underpriced steel flows to regions with high demand, often the US, as it is one of the world’s strongest markets for steel products. Without effective policy and trade measures, overcapacity will continue to be a hurdle for US producers and a barrier to reducing global GHG emissions.

Trade Exposure: The steel sector is highly trade-exposed. US producers operate on thin margins while facing growing expectations to reduce emissions. Few downstream customers are currently willing to pay a premium to support the transition to more innovative production. Policies, particularly those related to trade, need to be better aligned to encourage, rather than discourage, first-movers across the value chain.

Technology Innovation: Opportunities to increase carbon efficiency include improving energy and material efficiency, reusing coproducts (such as substituting clinker in cement with steel slag), and utilizing off gases to generate steam, heat, power, or other products (e.g., carbon utilization). Artificial intelligence may also expand opportunities for efficiency. Several key technologies show strong potential in the sector, including hydrogen-based direct reduced iron, electrification with clean power, and carbon capture, utilization, and storage. Many large producers have established innovative funds to support startups and breakthrough technologies that will accelerate the transition, but emerging technological solutions still face high capital costs or social and operational barriers. Startups play a crucial role in addressing these challenges by developing innovative solutions, including processes that require less energy, can be powered by renewable energy, and enable equipment to start and stop without significant temperature fluctuations. Demonstration projects and partnerships across the value chain are key to scaling up innovations.

Market Innovation: Several public and private financing mechanisms support the commercialization of innovative technologies. Public tools such as state grants, loans, and tax credits are powerful accelerators for industrial innovation. Colorado’s Industrial Tax Credit Offering (CITCO), a $168 million loan program offering up to $8 million per eligible project, was highlighted for its ease of use and the flexibility it offered through an “Other” category. On the private side, environmental attribute certificates (EACs) are an emerging mechanism that separates the environmental benefit from the physical product. This flexibility enables third-party partners to claim the EAC toward their sustainability goals rather than purchase the product itself, while still creating reliable demand.

Thanks to our I3 members and external speakers for sharing these valuable insights.

Check out some of the resources below: 

Contact us for more information about the Industrial Innovation Initiative and how you can join this growing effort. 

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Labor Engagement Manager for Industrial Innovation and Carbon Management, GPI

Alejandro comes to GPI from Labor Union SEIU-United Service Workers West. He represented union workers from downtown Los Angeles and LA’s westside corridor of Century City, Westwood, and Beverly Hills. Alejandro enforced various collective bargaining agreements for union workers, ensuring annual wage increases, health insurance, and other benefits and protections. In addition, he worked with union leaders and outside stakeholders, such as community partners, public agencies, politicians, and industry experts, to develop and execute union campaigns. Alejandro was also part of the Los Angeles-Justice for Janitors 2021 union contract campaign—he helped execute and coordinate large-scale actions across LA’s metropolitan area. Previously, he served as the Nevada state canvassing director at For Our Future Action Fund. He holds a BA in international studies and Italian from the University of Kansas.

Senior Program Coordinator for Industrial Innovation and Carbon Management, GPI

Carrie Danner joined the Great Plains Institute in 2023 and serves as the operations coordinator for the Industrial Innovation and Carbon Management team. In her work, she supports all projects within the program to elevate operations, particularly in grant-making and event planning. Carrie earned a bachelor’s degree from Knox College in environmental studies. Prior to joining GPI, she supported programs at the Conservation Corps of Minnesota & Iowa as their member experience administrator.

Industry Program Coordinator, GPI

Alana joined GPI in 2024 as a program associate on the Industrial Innovation and Carbon Management team, specifically supporting the Industrial Innovation Initiative, where she helps to advance industrial decarbonization through GPI’s consensus-building approach. Alana previously worked as an account executive at Jamf, where she helped current K-12 education customers improve and scale the management and security of their Apple device deployments. Alana has spent most of her professional years working with Minnesota nonprofits, including two years as an AmeriCorps member with Twin Cities Habitat for Humanity. She holds a bachelor’s degree in community environmental studies from the University of Wisconsin-Eau Claire.

Zachary Byrum, Research Analyst, WRI

Zachary Byrum is a Research Analyst in WRI's U.S. Climate Program, where he provides technology and policy analysis for carbon removal and deep decarbonization. His work focuses on pathways to reduce industrial emissions as well as bolstering technological carbon removal. Prior to WRI, Zach was a research assistant in the Carbon Management Research Initiative at the Center on Global Energy Policy. In the preceding years, he served as White House Intern in the National Economic Council under the Obama Administration and then an assistant analyst at the Congressional Budget Office. Zach holds a Master of Public Administration in Environmental Science and Policy from the School of International and Public Affairs at Columbia University and a B.A. in Economics and Political Science from Goucher College.

Senior Advisor of Industrial Innovation, WRI United States

Angela Anderson is the Director of Industrial Innovation and Carbon Removal in the Climate Program. She leads WRI's growing portfolio of work in industrial decarbonization and carbon removal and aims to change narratives around “hard-to-abate” sectors and promote the natural and technological interventions required to achieve net-zero targets. Prior to joining WRI, Angela worked as a program director, coalition builder, international advocate, and campaign strategist. She led the Climate and Energy Program at the Union of Concerned Scientists for ten years; facilitated US-NGO engagement in the international climate negotiations while at US Climate Action Network and at the Pew Environmental Trust; and founded Clear the Air, a national coalition to reduce pollution from power plants. Angela holds a B.A. in political science from Colorado State University.

Vice President of Industrial Innovation and Carbon Management, GPI

Patrice Lahlum is the Vice President of the Industrial Innovation and Carbon Management program at the Great Plains Institute. The Institute, headquartered in Minneapolis, MN, works with diverse stakeholders and communities across the country to transform the energy system to benefit people, the economy, and the environment. We strive to combine our unique consensus-building approach, expert knowledge and analysis, and local action to promote solutions that strengthen communities, shore up the nation’s industrial base, and enhance domestic energy independence, all while eliminating carbon emissions. Patrice oversees several initiatives, including the Carbon Capture Coalition, Industrial Innovation Initiative, Carbon Action Alliance, and the Regional Carbon Capture Deployment Initiative.

Senior Content Specialist for Industrial Innovation and Carbon Management, GPI

Kate Sullivan joined the Great Plains Institute in 2019. As Senior Content Specialist, Kate uses her analytical and design skills to provide research, writing, and logistical support across the Industrial Innovation and Carbon Management team. Prior to joining GPI, Kate worked as an Energy Counselor in the Center for Energy and Environment’s residential department, assisting homeowners with their energy needs and providing resources for efficiency upgrades. Kate earned her BA in Biology from St. Olaf College with an emphasis in Environmental Studies.

Senior Program Manager for Industrial Innovation and Carbon Management, GPI

Jill Syvrud joined the Great Plains Institute in 2017 and serves as the program manager for the Industrial Innovation and Carbon Management Program. In addition to overseeing the overall program, Jill directly supports the Industrial Innovation Initiative, a coalition advancing decarbonization solutions for the Midcontinent region’s most important industrial sectors. Jill earned a bachelor of science in biology from the University of Wisconsin–Eau Claire and a master of science degree in science technology and environmental policy from the University of Minnesota’s Humphrey School of Public Affairs. Jill’s past experience includes multiple graduate research assistantships concentrating on technology innovation and sustainable megacities, as well as a previous position as an administrative and outreach coordination intern with the Midwest Renewable Energy Association.