  ghg reductions rely on the industry shift to electric arc furnaces which need specific raw materials as feedstock to produce steel   more than 50 of the hbi market the most sustainable material for steelmaking is taken by one player   metalloinvest сonsiders an ipo in 2022 valued by industry analysts at 20 billion ferrous metals production is a significant source of greenhouse gas emissions the industry accounts for about 79 of all greenhouse gas emissions according to worldsteel the global association of steel producers the development of “green” technologies in steel production over the coming years will undergo a vast expansion due to investor interest infrastructural investments and active construction are underway globally as esg issues gain larger attention the investment isn’t all altruistic eu officials also plan regulatory measures eu lawmakers announced a carbon tax to push the transition to ecologically efficient production technologies demand for “green” steel will continue to rise and steel production technologies with low or zero co2 emissions will emerge at an accelerated pace as a result of higher investor standards and stricter regulation one obvious route to reduction will be the gradual replacement of blast furnaces with electric eaf ones which operate at a lower intensity of co2 emissions the biggest player in metals and mining china has already announced a gradual transition to eaf steel production eafbased mills produce 28 of world steel though they account for only 8 of the co2 generated by the steel industry on the other hand blast furnace  basic oxygen furnace route produces 72 of world steel with a higher co2 generation rate 92 midrex technology the use of hbi  dri in electric arc furnaces allows the production of highquality steel with much lower energy costs and lower emissions compared to the blastfurnace method the resulting lowimpurity steel meets the highest requirements of industries such as automotive and mechanical engineering and importantly greenhouse gas emissions total 15 tons per 1 ton of steel at eaf furnaces production compared to 23 tons at traditional blast furnace production international energy agency iron and steel technology roadmap executive summary  towards more sustainable steelmaking currently global ironore raw material producers such as vale rio tinto bhp fortescue metals produce mainly iron ore a product for blast furnaces and are only starting to develop projects for hbi and dri production to provide raw materials for electric furnaces russia’s metalloinvest currently accounts for about 50 of global hbi supplies and the company plans to double hbi production capacity to 9m tons it clearly seeks to press its market advantage by positioning itself as an “environmental partner” to the downstream steel producers providing stockfeed with less co2 emissions in conjunction with that metalloinvest may hold an ipo in the beginning of 2022 with the company’s value estimated at about 20b by industry analysts the offering would give investors a ticket to play the “green” metallurgy story on a market leader however there are certain risks as many russian and international companies have also seek to enter this space and build up hbi production capacity they are actively raising “green” finance to support such investment programs yet metalloinvest clearly has the firstmover advantage and will likely be able to maintain its leading position