Sustainable steel

Building a modern, sustainable steel industry in Northwest Indiana

Northwest Indiana has been a center of American steel production for more than a century. Today, the region’s three steel mills—Burns Harbor, Indiana Harbor, and Gary Works—produce nearly half of the nation’s primary steel. Yet these facilities are at risk of extinction without investments in modern, clean steelmaking technology.

A 2026 report published by IU’s Environmental Resilience Institute and 5 Lakes Energy examines practical pathways to make this transition as well as the projected positive impacts on jobs, public health, and economic development in Northwest Indiana.

Completed in 1908, the Gary Works steel mill (pictured above) employed more than 30,000 workers at its height. By 2024, employment had dwindled to an estimated 2,260 workers. Without investments in modernization, the steel mill is at risk of further job losses, as are Northwest Indiana's two other steel mills, Burns Harbor and Indiana Harbor.

Modernization is essential to sustaining Indiana’s steel economy

Steel production remains a major driver of Northwest Indiana’s economy, but employment in the industry has declined sharply in recent decades. At its peak in the mid-20th century, the region’s steel mills employed more than 65,000 workers. Today, about 9,000 workers remain across the three primary steel facilities.

Without changes to production methods, the region could face continued job losses. Researchers estimate that direct steel employment could fall below 5,000 jobs by 2034 if current trends persist. Much of this decline reflects global competition and the spread of newer steelmaking technologies that are more efficient than traditional blast furnaces.

Many new steel facilities in North America and Europe now rely on production systems built around direct reduced iron and electric furnaces. Without similar modernization, Northwest Indiana’s mills risk losing market share to newer plants built with these technologies.

April 15 webinar: Modernizing Indiana steel production

Join ERI on Wednesday, April 15 to learn more about the benefits of a modern steel industry in Northwest Indiana. Speakers will discuss projected changes to the regional workforce and the reduced health and environmental impacts of a clean steel industry.

58-68%reduction in pollution-driven premature deaths in Northwest Indiana communities by transitioning to clean steelmaking

$2.8-3.6Bestimated cost per facility of fully transitioning Northwest Indiana steel mills to modern technology

14% statewide greenhouse gas emissions attributed to Indiana’s iron and steel industry

Cleaner steel technologies could reduce pollution and improve public health

Traditional blast furnace steelmaking produces large amounts of air pollution, including greenhouse gases, particulate matter, and other harmful emissions. In Northwest Indiana, these emissions contribute to significant public health impacts for surrounding communities.

Researchers estimate that air pollution from the region’s steel mills contributes to roughly $100 million in annual healthcare costs. Steel-related air pollution is also linked to hundreds of emergency room visits for respiratory illness and tens of thousands of lost work and school days each year.

Modern steelmaking technologies offer a cleaner alternative. Production systems that combine direct reduced iron with electric furnaces remove coal and coke from the steelmaking process, significantly lowering emissions. Depending on energy sources, these systems could reduce greenhouse gas emissions by as much as 45–76% while substantially cutting conventional air pollutants.

Transitioning to modern steelmaking can create new economic opportunities

Modernizing Northwest Indiana’s steel mills would require significant investment (approximately $1.5–$2.2B per facility for partial modernization and $2.8–$3.6B per facility for full modernization) but could also generate major economic benefits. Construction of new production equipment and supporting infrastructure would create thousands of temporary jobs while supporting long-term positions in advanced manufacturing.

A transition to cleaner steel production would also increase demand for electricity and hydrogen infrastructure used to power modern technologies. Expanding these systems could support additional employment in energy development, engineering, and industrial construction.

Beyond job creation, modernization would help ensure that Indiana’s steel producers remain competitive in global markets. As manufacturers increasingly seek lower-carbon materials, modern steel facilities will be better positioned to supply emerging demand while sustaining the region’s historic role in American steel production.

Access the full report

Jobs in the Balance: Building Toward a Clean Steel Transition in Indiana