By: Hanno Van Niekerk, Market Leader – Sub Saharan Africa, AVEVA

Steel is going green even with the current geopolitical situation, but is the shift happening as fast as it needs to? From construction to kitchen appliances, steel supports our world in many, often invisible, ways. This wide versatility comes with a significant impact: the steel industry sector accounts for about 5% of total CO2 released within the EU and 8% of global energy-related greenhouse gas emissions. With 2.6 billion tons emitted, the industry would comprise the third-largest country.

Progress on decarbonization is underway, not least from decarbonization incentives and regulations around emissions and imports. The industry is responding with alliances, new labelling standards and zero-emissions production in countries like Sweden.  But as the International Energy Agency warns, the project pipeline for primary near-zero emissions plants by 2030 remains stagnant at about 10 million tonnes (Mt). We need ten times those volumes by the end of the decade to stay on a net-zero pathway.

The industry can ramp up responses in two ways. First, efficiency adjustments can cut materials and energy use in existing processes, including by using internet of things (IoT) devices and artificial intelligence (AI) to streamline value chains. Much more important – and therefore the focus of this article – is reimagining one of the world’s oldest industries, such as by shifting from coal-based blast furnaces to hydrogen-fueled direct reduced iron (DRI) or using electric arc furnaces (EAF) powered by renewable energy. Combining these processes – the physics for which is well established – will likely account for 64% of total primary steel production by 2050 in the BloombergNEF net-zero outlook.

The critical role of EPCs

Can the world’s engineering, procurement and construction (EPC) companies rise to this monumental challenge? Decarbonizing steel demands building out capacity at a blistering rate. Sustainable plants will need to handle new processes and materials alongside tightening regulations – including embedding emissions tracking and compliance capabilities into every stage of project execution. EPCs are experienced at delivering on challenging industrial demands, but their complex workflows often span years. They must now embrace digital innovation to manage complexity, reduce costs and risks while accelerating timelines.

From concept to commissioning, leveraging collaborative Industry 4.0 technology such as 1D, 2D and 3D integrated engineering and design can help EPCs and asset owners establish green steel leadership. This process, called EPC 4.0, supports closer collaboration, streamlines costs and lowers the risk of errors, empowering teams to hand over projects on time and within budget. At AVEVA we have already seen a figure of 15% reduction in total install costs for capital projects by leveraging a cloud-enabled EPC 4.0 approach.

Digital engineering as the basis

Digital engineering and data-centric platforms are foundational to this approach. Advanced 3D design software and integrated project engineering tools enable EPCs to identify spatial conflicts early, optimize modular construction, and ensure the stringent safety zoning essential to working with hydrogen. These tools reduce rework and design errors, slashing costly delays and cost overruns that have long plagued heavy industrial projects.

When US energy services company Babcock & Wilcox (B&W), for example, piloted its new Brightloop hydrogen project using a unified engineering platform, engineers gained single-window oversight of the value chain. Standardized production improved, data handovers simplified, and collaboration increased as all stakeholders worked from a shared source of truth. Engineering costs fell and rework has been eliminated, but B&W also sees potential for new revenue streams by sharing data with ecosystem partners. With its ROI proven, the project is now a catalyst for new investment in low-carbon energy innovation.

As we can see, when it comes to execution, EPC 4.0 means projects can also be delivered faster and closer to budget deadlines. Beyond project efficiency, digital platforms can help create a unified digital twin (a comprehensive virtual model of the asset through design, engineering and handover stages). This enables teams across departments and partner companies to work concurrently across disciplines, enhancing continuous data-driven decision making.

Model plant operations to accelerate delivery

EPCs can model plant operations before concrete is poured, allowing for early detection of design conflicts and operational inefficiencies before construction begins. Not only are costly revisions reduced, but digital twins can also support compliance with emissions standards by embedding monitoring requirements into plant design.

Clean energy pioneer Newpoint Trillium Management LLC is currently developing a $1.5-billion clean hydrogen facility in Central Appalachia, using EPC 4.0 and digital twin technologies to manage the full project lifecycle in the cloud. This digital-first strategy is designed to reduce emissions and improve efficiency from construction through daily operations by streamlining workflows, enhancing coordination and reducing execution risk. Once complete, the facility is projected to produce 500 metric tons of clean hydrogen daily, delivering an estimated $546 million in regional economic impact.

Similarly, when AP Consultoria e Projetos adopted a fully digital EPC technology stack, integrating laser scans with customer engineering data, reducing rework by 29%, field visits by 90% and delivery time by nearly half.

By digitizing every phase, EPC 4.0 reshapes capital project delivery in alignment with our energy transition goals.

The economic and strategic stakes

The economic stakes are enormous. According to academic research using data from the aviation and automotive sectors, EPC 4.0 platforms can reduce CapEx project costs by up to 15%. Digitalization directly contributes to these gains, alongside aspects such as partnering, organizational flexibility and human expertise. These are critical factors when pioneering first-of-a-kind green steel facilities.

But the imperative extends beyond economics. As nations race to decarbonize heavy industry, the ability to deliver green steel at scale will determine who leads in industrial competitiveness and climate leadership. EPCs that master digital transformation will not only unlock lower carbon emissions they will help secure supply chains, create green jobs and build the resilient infrastructure of tomorrow.

In short, green steel is less a metallurgical challenge than a project agility challenge. Meeting the climate moment requires retooling how capital projects are delivered. But digital-first EPCs can become the architects of the upcoming Fourth Industrial Revolution, building a greener, more sustainable steel industry that powers global progress.