Powering Baosteel’s sustainable steelmaking through cutting-edge transformers technology in China
Customer Story | 4 min read
China's energy sector is rapidly transforming to meet the demands of its growing economy and to achieve its decarbonization goals. Electricity consumption has increased significantly, driven by industrial expansion and emerging technologies like AI, prompting substantial investments in energy infrastructure and renewable integration.
The nation is pursuing its "dual carbon" strategy, aiming to peak carbon emissions by 2030 and achieve carbon neutrality by 2060. It has already surpassed its 2030 renewable energy capacity targets and is expanding its infrastructure at an unprecedented pace, supported by policies promoting green finance and clean technology innovation.
A key focus is the steel industry, which accounts for a significant portion of China's carbon emissions.
Baowu Group and Hitachi Energy forging China’s “zero-carbon” vision
The alchemy of steel and innovation
Challenges
Decarbonizing steel industry
The steel industry is one of the most energy-intensive sectors globally, accounting for around 15 percent of China’s total carbon emissions. As the country advances toward its carbon neutrality goals, steel producers face mounting pressure to modernize and decarbonize their operations.
Baosteel Zhanjiang Iron & Steel Co., Ltd., a subsidiary of state-owned China Baowu Steel Group Co., Ltd., is taking bold steps to lead this transformation. At its Zhanjiang site, the company is developing a hydrogen-based shaft furnace and a zero-carbon steel sheet plant, both key to achieving its ambitious sustainability objectives.
A cornerstone of this innovation is the electric arc furnace (EAF) process, which, unlike traditional blast furnaces, enables lower-emission steelmaking when paired with renewable electricity and hydrogen-based feedstocks. However, ensuring stable, efficient, and high-power EAF operation presents unique technical and reliability challenges.
Hitachi Energy's Solutions
Delivering the largest furnace transformer for China
To support Baosteel’s decarbonization journey, Hitachi Energy supplied a 200 MVA electric arc furnace (EAF) transformer and a 40 MVA ladle refining arc furnace transformer for the Zhanjiang zero-carbon steel sheet mill project.
These transformers are critical to the EAF steelmaking process, enabling consistent and reliable high-power operations. The 200 MVA EAF transformer is the largest of its kind ever manufactured and delivered for China and for Baowu Steel Group, the largest producer of steel worldwide, marking a major milestone in transformer engineering and manufacturing and a significant contribution to carbon emission reduction in the steel industry.
Both units were manufactured at Hitachi Energy’s Zhongshan factory, which has extensive experience and a long-standing track record in producing transformers for demanding industrial applications.
The 200 MVA transformer represents a new generation of EAF technology, with robust short-circuit resistance, a reliable and redundant cooling system, and balanced low-voltage current distribution, features that significantly enhance performance and operational stability. Designed for durability and efficiency, this solution offers a cost-effective, lifecycle-optimized answer to the energy-intensive demands of EAF steel production, helping Baosteel maintain continuous and efficient output.
Benefits
Building a zero-carbon industry future
As the world’s largest steel producer, accounting for more than 50 percent of global steel production, China plays a pivotal role in shaping the future of the global steel industry. While basic oxygen furnace (BOF) technology has historically supported large-scale production, the transition to cleaner alternatives like electric arc furnace (EAF) steelmaking represents an important step toward long-term sustainability.
Baosteel’s Zhanjiang "Zero Carbon High Grade Thin Steel Plate Factory" project is a landmark initiative on this journey, integrating hydrogen-based direct reduction and high-efficiency EAF technology to significantly lower carbon emissions in steelmaking operations.
Supported by Hitachi Energy’s transformer solutions, the project is not only advancing Baosteel’s own carbon neutrality goals but also setting a new standard for green, low-emission steel production in the region.
Once operational, the plant will be among the first of its kind in China, delivering an annual output of approximately 1.8 million tons of green low-emission steel. This milestone reflects Baosteel’s leadership in sustainable innovation and highlights how cutting-edge technologies can help accelerate the transition to greener industrial practices.
