⚠️ Don’t Be a Dirty Energy Hog: Why “Green Steel” Isn’t Always as Clean as It Looks

— And What High-Energy U.S. Industries Should Be Doing Instead

By EcoBusinessNews

Introduction: Greenwashing in the Age of Climate Crisis

As global industries rush to slap the word “green” on everything — from hydrogen to steel — the public is beginning to ask a fair question: “Is this really clean, or is it just marketing?”

One major offender in the sustainability storytelling space? Green steel.

While European and Scandinavian producers have made legitimate progress using hydrogen-powered, fossil-free processes, many companies in the U.S. are still stuck using dirty, coal-fired electricity , even while marketing their product as sustainable.

The uncomfortable truth is that not all “green steel” is actually green — and high-energy users across the United States, especially in California, Texas, and the Rust Belt, need to look in the mirror.

In this article, we’ll uncover:

Why "green steel" can be misleading

How the U.S. manufacturing sector (including in CA) can actually go green

How high-energy users can take advantage of federal tax credits (like the Investment Tax Credit [ITC] ) and other incentives

What companies like Pacifico Energy are doing to help energy-intensive industries shed dirty power

Chapter 1: What Is “Green Steel” — And Is It Really Clean?

Steel production is one of the top three most carbon-intensive industries globally. Traditional steelmaking relies on blast furnaces powered by coke (a coal product) and emits nearly two tons of CO₂ per ton of steel produced.

So-called “green steel” aims to decarbonize this process in several ways:

Using electric arc furnaces (EAFs) instead of blast furnaces

Powering those EAFs with renewable electricity instead of coal

Substituting green hydrogen for coke as a reducing agent

But here’s the kicker:

⚠️ In the U.S., many steelmakers using EAFs are still powered by fossil-fueled grids , not solar, wind, or hydro. That means they’re trading one dirty input for another.

So while the production looks cleaner on paper , it may still be reliant on natural gas or coal-fired electricity , especially in states without strong clean energy mandates.

Chapter 2: Who’s to Blame? (And Who’s Getting It Right)

The Greenwashing Offenders

While no company wants to be publicly shamed, here are a few cautionary examples:

California and Midwest steel companies using EAFs powered by carbon-heavy grids, then marketing their product as "sustainable"

Recyclers claiming zero-emissions processes while buying brown power off the grid

Construction and automotive sectors advertising low-carbon supply chains but lacking true clean energy sourcing

📍 California has some of the most progressive climate laws in the world — yet many industrial parks still rely on fossil power from the CAISO grid during peak production hours.

The Global Leaders Doing It Right

Let’s be fair: Some companies are walking the talk.

SSAB (Sweden) – Uses hydrogen and hydropower to make fossil-free steel.

H2 Green Steel (Sweden) – Integrated green hydrogen with a closed-loop energy system.

thyssenkrupp (Germany) – Piloting hydrogen DRI + EAF systems powered by renewable sources.

But the U.S. industrial sector is lagging behind , both in clean power sourcing and in investment.

Chapter 3: The Real Culprit? Energy Sourcing.

Here’s where it gets real:

💡 Electric Arc Furnaces (EAFs) Are Only as Clean as the Power Behind Them

Most of the “greener” steelmaking methods still require huge amounts of electricity — and when that electricity comes from fossil sources, the emissions still exist — they’re just relocated from the furnace to the power plant .

Some EAFs consume over 400 kWh per ton of steel , which quickly adds up to gigawatt-hours of annual consumption .

California steel manufacturers — especially in the Central Valley, Inland Empire, and Los Angeles — are prime offenders, because many don't source dedicated renewable energy or build onsite solar+battery systems .

Chapter 4: What Can U.S. Steelmakers (and Other High-Energy Users) Do?

✅ Step 1: Build or Source Dedicated Renewable Energy

Steelmakers, manufacturers, food processors, and other industrial giants must start investing in:

Onsite solar + battery storage

Offsite Power Purchase Agreements (PPAs) from solar and wind farms

Virtual PPAs if land or roof space is limited

⚡ Companies like Pacifico Energy specialize in providing this clean power infrastructure with no upfront costs through Energy-as-a-Service (EaaS) models.

✅ Step 2: Take Advantage of Massive Federal Incentives

Thanks to the Inflation Reduction Act (IRA) and the revamped Investment Tax Credit (ITC) , energy-intensive industries now have unprecedented access to clean energy funding.

🌞 Investment Tax Credit (ITC)

30% base credit for solar and battery systems

Up to 70% credit with bonus incentives: Domestic content

Energy communities

Low-income siting

🏭 Section 45X and 48C Credits

For domestic manufacturers of steel, inverters, batteries, etc.

Offers per-unit production tax credits

Can be used by direct owners or energy service partners

🔗 More on the ITC here

✅ Step 3: Work With a Clean Power Provider Like Pacifico Energy

Pacifico Energy 🔗 is helping steelmakers and industrial users:

Offset grid power with 100% clean solar and battery systems

Install onsite or adjacent renewable energy infrastructure

Capture ITC and PTC tax credits without needing to own the system

Improve ESG scores and meet Scope 2 emissions targets

They operate across:

California – Including agricultural and manufacturing corridors

Texas – For large-scale, grid-hungry clients

Utah, Nevada, and Midwest states – Where land and sun are abundant

Pacifico owns and operates the system. You get clean energy, locked-in prices, and none of the hassle.

Chapter 5: The Future — If You’re Not Cleaning Your Power, You’re Not Green

🔌 The ESG Pressure Is Mounting

Public companies are now being forced to disclose carbon emissions via the SEC’s Scope 1/2/3 guidance. If you’re claiming to make "green steel" or "sustainable food packaging" or “net-zero logistics,” you better back it up with verifiable energy data .

🌱 Clean Energy Is a Financial No-Brainer

Between:

Tax credits

Lower operating costs

Peak demand savings

Long-term power purchase predictability

…it no longer makes sense not to go clean.

Conclusion: Don’t Be a Dirty Energy Hog

Steelmakers, manufacturers, and high-energy users can no longer get away with green marketing while running on fossil juice. That game is over.

You don’t need to be perfect — but you do need a plan:

Clean power sourcing

Energy storage integration

Smart partnerships

Tax credit alignment

And companies like Pacifico Energy are here to help.

✅ Stop pretending to be green. ✅ Start building real, resilient, clean energy systems. ✅ Don’t be a dirty energy hog — because your customers, investors, and regulators are watching.

Want to Learn More?

📎 Pacifico Energy — Solar & Storage for High-Energy Industries 📎 Department of Energy ITC Overview 📎 IRS Guide to IRA Credits 📎 Inflation Reduction Act — Full Text & Industry Impact