Green steel momentum slows, LeadIT calls for policy support

The momentum behind green steel adoption slowed in 2025, according to a new report by LeadIT. Despite the slowdown, the global group says 2026 is set to be a decisive year as the industry moves from planning to implementation.

LeadIT’s Tracker finds that just two green steel projects were announced in 2025, a notable decrease from 15 in 2021. As a result, the planned primary green steel production capacity for 2050 is now less than 2% of today’s total global steel production, a material of key importance to the packaging industry.

The report also points to the Stegra project in Boden, Sweden, as the most significant milestone of 2026, representing the first potential full-scale commercial commissioning of green steel. 

Several pilot and demonstration projects are set to advance in Germany and the US this year.

“Successful commissioning of Stegra Boden in 2026 and the roll-out of the longer term projects in the Hybrit alliance of SSAB, LKAB, and Vattenfall, alongside pilot projects globally, will impact the sector in the coming years,” says Per Andersson, head of secretariat at LeadIT.

“These projects will influence confidence and the pace of transition not just in Sweden and in steel production, but internationally and across industry in the coming years.” 

Preventing cancelations

Data from LeadIT’s Tracker and report show that a significant share of green steel projects have faced delays compared with their publicly disclosed commissioning schedules.

Limited transparency makes it difficult to assess timelines for such projects, the report continues. In 2025, several high-profile projects, particularly in Europe, were paused or cancelled.

Aaron Mailtais, policy lead at LeadIT, argues: “Policy support to get first-of-a-kind green steel projects up and running can deliver benefits far beyond any single plant by accelerating learning, proving the technology at scale, and helping create early markets and confidence across the entire sector.”

The Tracker further shows that the current planned primary green steel capacity by 2050 totals 28 million metric tons annually and 18 million metric tons of green iron per year (used as feedstock for steelmaking). This is a small fraction of the 1,800 million metric tons of steel that the industry produces annually today. 

LeadIT says: “This underscores the scale of ambition still required to decarbonize the sector.”

Meanwhile, annually, only around 270,000 metric tons of green iron capacity and 60,000 metric tons of green steel capacity are operational. This means only a small share of announced projects has reached production.

LeadIT finds that while the steel sector continues to fall short of emissions reduction targets, global steelmakers are signalling commitment to decarbonization, despite the rising costs, weak demand, and uncertain policy environments. 

“Future policy intervention may prove decisive in sustaining momentum until green steel becomes cost-competitive at scale.”