Baosteel invested 3.2 billion yuan in energy conservation and decarbonisation in 2025

Chinese steel producer Baoshan Iron & Steel (Baosteel) invested 3.2 billion yuan ($0.47 billion) in energy-saving and low-carbon initiatives last year. This was reported by Yieh, citing the company’s 2025 sustainability report.

Thanks to a comprehensive package of measures, including technological modernisation, process optimisation and the switch to ‘green’ electricity, Baosteel achieved an annual reduction in carbon emissions of over 2 million tonnes last year.

According to the report, in 2025 the steelmaker’s carbon intensity fell to 1.96 million tonnes of CO₂ per million tonnes of steel, which is 8% lower than in the baseline year of 2020. The main drivers of this reduction were the operation of a 1-million-tonne hydrogen blast furnace for the production of steel with near-zero carbon emissions, an expanded portfolio of low-carbon steel products, and an intelligent carbon emissions data platform that enables the digitisation of this accounting.

It is worth noting that China has launched a new pilot programme to support the development of hydrogen energy, focusing in particular on the decarbonisation of the steel industry. The key objective is to reduce the price of hydrogen for end-users.

In March, three government ministries announced an initiative offering rewards to five urban clusters for achieving hydrogen-related targets — with projects to implement hydrogen in the steel industry.