The steel industry is a cornerstone of global infrastructure, but it also comes with significant environmental challenges. Today, the industry accounts for around 8% of global energy use and 7% of CO₂ emissions. We are, however, at the heart of an exciting transformation, where sustainable initiatives are reshaping the industry with low-carbon technologies, improved resource efficiency, and greener products.
Recycled steel at the core
Recycled steel is key to our journey toward more sustainable steel production. By reusing steel, we can drastically reduce our carbon footprint compared to producing new steel, as we avoid the energy-intensive processes involved in mining and processing virgin raw materials. For us at Alleima, using recycled steel not only lowers emissions but also helps us achieve our ambitious environmental goals.
The benefits of recycled steel
Producing steel from scrap requires up to 70% less energy than conventional production using virgin materials. This results in significant CO₂ reductions and makes recycled steel a fundamentally greener choice. Beyond climate benefits, recycled steel plays a crucial role in the circular economy – a system designed to continuously reuse resources instead of creating waste. By repurposing existing steel, we reduce the need for new raw materials, conserve natural resources, and minimize environmental impact.
Our Buyback Program is a prime example of putting this circular approach into practice. By purchasing steel scrap, known as “return steel,” directly from our customers, we ensure that every atom of scrap is used optimally – nothing goes to waste.
Economic and sustainability advantages
Recycled steel isn’t just good for the environment – it also brings economic benefits. By reducing energy consumption and reliance on costly raw materials, manufacturers can achieve significant savings. From an ESG perspective, companies using recycled steel strengthen their sustainability profile, lower their carbon footprint, and build a reputation as environmentally responsible actors.
Stronger supply chains
Recycled steel also enhances production resilience. Unlike conventional steel, which is vulnerable to raw material market fluctuations and geopolitical risks, our recycled steel is sourced from diverse and often local channels. This provides us and our customers with a more secure and predictable production process, even during global disruptions such as pandemics or geopolitical tensions.
Overcoming challenges
Scaling up the use of recycled steel comes with challenges. Quality assurance, limited infrastructure, and logistics for collecting, sorting, and transporting scrap are all areas we actively address. Collaboration between industry and policymakers is essential. With the right incentives, investments in sorting technologies, and improved infrastructure, we can create efficient and reliable recycling systems.
Since its launch in 2020, our Buyback Program has encouraged customers to actively participate in the recycling process, turning scrap into high-quality raw material ready for reuse. We simplify collection and transport through clear labeling and logistical support, making it easier and more rewarding for customers to participate. Properly sorted and traceably labeled return steel is remelted and reused without compromise – maintaining the same high quality and performance standards as steel made from virgin materials.
The way forward
The financial, environmental, and practical benefits of recycled steel make it indispensable for a sustainable steel industry. Through initiatives like our Buyback Program, we demonstrate how recycled steel can improve production practices, enhance resource efficiency, and promote a circular economy. Together with industry partners, customers, and policymakers, we are building a resilient and environmentally responsible steel industry where nothing goes to waste and everything finds new life.