Carbon steel is very much needed in a lot of places. It is harder than mild steel and is used in axles, gears, cutting tools etc.
SSAB HYBRIT technology replaces the usage of coal/coke in the iron reduction stage with hydrogen which is nice since it only produces water and not CO2.
But I can't find any information regarding the carbon content of the resulting sponge iron. If the carbon content is too low you still need to add elemental carbon in some form.
Edit: https://www.hybritdevelopment.se/wp-content/uploads/2024/08/hybrit-broschure-fossil-free-steel-production-ready-for-industrialisation.pdf
Found all the answers I was looking for. :)
The resulting sponge iron is 0% carbon meaning you need to add carbon in some form. The broschure mentions the use of either biocarbon or a small amount of natural gas. So no need for coal. Neat. :)