Abstract: The steel industry is one of the most energy-intensive and carbon-emitting sectors worldwide, significantly contributing to environmental challenges. As the world shifts toward more sustainable and eco-friendly industrial practices, there is increasing pressure on the steel industry to adopt technologies that mitigate its environmental impact while enhancing energy efficiency. One promising technology is steel chemical co-production, which effectively addresses these challenges by utilizing by-products such as waste heat, waste gas, and carbon dioxide (CO₂) generated during the steelmaking process. This innovative approach is critical for the steel industry′s low-carbon transformation and offers a viable path toward green manufacturing. Steel chemical co-production technology focuses on capturing and repurposing by-products generated during steel production. Traditionally, processes like blast furnaces and converters produce substantial amounts of waste heat and gases, much of which remains unutilized, leading to inefficiency and environmental harm. Through co-production technology, these by-products can be converted into valuable forms of energy, such as electricity and heat. A key innovation is the treatment of CO₂, which is often released in large quantities during iron ore reduction. By converting CO₂ to CO, it can be used as a fuel for further smelting or for generating additional energy, thus closing the loop in steel production. One significant advantage is its potential to reduce CO₂ emissions. Steel producers can capture CO₂ from various stages of steelmaking, including the blast furnace and converter, and recycle it into usable energy. Reports indicate CO₂ emissions can be reduced by over 30% across the entire steel production process, with reductions of up to 27.25% specifically during the converter process. This substantially contributes to the industry′s overall sustainability goals, achieved through the direct recycling of CO₂ and enhanced production system efficiency, thereby decreasing the need for additional energy inputs. The economic viability of steel chemical co-production is another critical factor. While initial investments in advanced co-production technologies may be substantial, long-term benefits are significant. By optimizing energy usage and reducing carbon emissions, steel producers can lower operational costs over time. These savings can offset the initial investment, making the technology economically attractive. Furthermore, as environmental regulations become more stringent and carbon pricing mechanisms are introduced worldwide, steelmakers adopting co-production technologies are likely to benefit from regulatory incentives, such as tax breaks or carbon credits, further enhancing the technology′s economic feasibility. In conclusion, steel chemical co-production technology offers a promising solution to the dual challenges of reducing energy consumption and carbon emissions in the steel industry. By recycling CO₂ and other by-products, this technology enhances energy efficiency, lowers emissions, and provides an economically viable route for steelmakers to contribute to a more sustainable future. As the technology matures and gains widespread adoption, it will play a crucial role in helping the steel industry meet its environmental and economic challenges, aligning with the broader goals of green and sustainable development.