Green Hydrogen as a Decarbonization Pathway for Steel Industry in Pakistan

The global steel industry emits 1.92 tons of CO2 per ton of output and faces urgent pressure to decarbonize. In Pakistan, the sector accounts for 0.29 tons of CO2 per ton of output, with limited mitigation frameworks in place. Green hydrogen (GH2)-based steelmaking offers a strategic pathway toward decarbonization. However, realizing its potential depends on access to renewable energy. Despite Pakistan’s substantial technical wind potential of 340 GW, grid limitations currently restrict wind power to only 4% of national electricity generation. This study explores GH2 production through sector coupling and power wheeling, repurposing curtailed wind energy from Sindh to supply Karachi’s steel industry, and proposing a phased roadmap for GH, enabling fossil fuel substitution, industrial resilience, and alignment with global carbon-border regulations.