Seeing the bigger picture: Pathways to carbon neutrality in the hard-to-abate sector–insights from a field study

Abstract

Reducing carbon emissions in the hard-to-abate sector is crucial yet challenging for achieving carbon neutrality. This study explores pathways to carbon neutrality in steel industry using Carbon Capture and Utilization (CCU) technology. Employing a design science research approach anchored in the Natural Resource-Based View (NRBV), this study examines the intervention, mechanisms, and outcomes of CCU technology implementation within a leading steel manufacturing facility. The intervention led to an average CO₂ reduction of around 9% and economic benefits of around $89,825 per month from the pilot project. This study extends to the cement, oil and gas, and fertilizer industries, enhancing the generalizability of its findings. It demonstrates that more than a technological shift, CCU technology adoption represents a comprehensive transformation, encompassing process, product, and administrative innovations. The research also highlights key challenges and trade-offs, including safety concerns, spatial constraints, and integrating new processes into existing frameworks. Emphasizing the need to build internal and external capabilities, it underscores process modifications, innovative ways of CO₂ utilization, and broad stakeholder collaboration as critical factors. Ultimately, this study advances the understanding of viable pathways for CO₂ emission reduction through CCU technology.