Mexico Produces 95% of its Steel in Eco-Friendly Electric Arc Furnaces

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Steel production is one of the most significant contributors to global CO2 emissions, with 1.85 tons of greenhouse gas emitted for 1 ton of steel produced. That’s mainly due to the use of blast furnace-basic oxygen furnaces (BF-BOF), which produce almost 2 tons of CO2 for a ton of steel produced. Various companies implement different strategies to reduce CO2 emissions, including preheated hydrogen injection or hydrogen-based iron reduction (H2-DRI). However, electric arc furnaces (EAF), are considered the cleanest route, as they produce 0.357 tons of CO2 for every ton of steel produced.

EAFs melt scrap steel using electricity, preferably sourced from renewables, significantly lowering carbon emissions compared to traditional blast furnaces. This method also promotes recycling within the steel industry. And recently, Mexico has emerged as a significant player in the green steel industry, with several initiatives highlighting its commitment to sustainable steel manufacturing. 

According to Canacero Salvador Quesada, the general director of the National Chamber of the Iron and Steel Industry in Mexico, the country already produces 95% of its steel in EAFs, making it the greenest steel producer globally, ahead of the US and EU. Quesada added that the US emits 1.9 tons of CO2 through steel production, while China emits 2.7 tons. Meanwhile, Mexico’s footprint sits at 1.6 tons.

“In Mexico we are below Europe due to this integration of 95 percent of steel production from scrap. It is a competitive advantage of Mexico that we have to exploit,” added Quesada.

Mexico’s hike in green steel production is the result of recent investments in the industry. Notably, Deacero, one of Mexico’s leading steel producers, announced a $600 million investment in a new steel plant in Ramos Arizpe, Coahuila. Slated to begin production by February 2026, this facility will add 1 million tons of steel output, focusing on low-carbon production methods to meet demand for greener steel. Meanwhile, Grupo Acerero GASA, Mexico’s fifth-largest rod producer, is undertaking the Beskar Project, which involves constructing a new EAF steel mill to produce slab and sheet steel plates. 

Ashton Henning