Technology readiness: Direct use of renewable heat and biomass

Current status of implementation and existing gaps

Direct use of biomass for furnace heaters and other downstream steel production can reduce residual emissions from low-carbon steel production. This approach is being commercially applied in some developing markets, such as Brazil and India. However, the limited availability of sustainably sourced biomass and uncertainty about the level to which biochar can replace coking coal restrict the major expansion of this pathway compared to others.

Examples and initiatives

Brazil is the world’s largest producer of biochar-based steel. Seven iron and steel plants in the country use biochar to replace coal in their primary steel production with blast furnaces. With this low-carbon alternative approach, the country has so far reduced the sector’s emission intensity from blast furnace-basic oxygen processes by 0.4 GtCO₂e per tonne of crude steel (GEM, 2024).

Current status of implementation and existing gaps

Using renewable heat through electrification and sustainable biomass for heat and feedstock is technologically feasible and is commercially practised for select industrial processes. The latter can be implemented using two main pathways: replacing primary petrochemicals with bio-based chemicals and replacing fossil fuel-derived polymers (particularly plastics) with alternatives from biomass. However, large-scale deployment involves addressing economic, technical and regulatory challenges.

Examples and initiatives

As of March 2025, there are around 90 biomethanol projects in the pipeline, with a production capacity of about 16 Mt (GENA Solutions Oy, 2025).

Current status of implementation and existing gaps

Biomass and waste co-processing are categorised as having a moderate to high technology readiness level (level 6-8), indicating the technology is commercially viable and expanding (Future Cleantech Architects, 2024).

Several cement kilns in the EU already operate with 100% alternative fuels, including a mix of biomass and non-recyclable waste (Cembureau, 2024).

The demand for biomass from multiple industries indicates that it might be a struggle to secure long-term sustainable biomass sources (GCCA, 2024).

Examples and initiatives

Dalmia Cement in India uses rice husks and agricultural waste in its cement kilns, targeting 100% renewable energy-based production by 2030.

Holcim has increased its biomass and waste co-processing capacity to over 50%, using alternative fuel substitution in several plants across Europe. Cemex is piloting a solar-powered cement kiln that also integrates biomass combustion. Taiheiyo Cement in Japan is using CO₂ capture technology integrated with biomass and biofuel-based kiln operations (GCCA, 2024).