Interaction between electrified steel production and the north European electricity system

This study investigates the interactions between a steel industry that applies hydrogen direct reduction (H-DR) and electricity system of northern Europe. We apply techno-economic optimization model with aim achieving net-zero emissions from sectors in Year 2050. The minimizes investment running costs production units, while meeting demands for steel. modeling is carried out number scenarios, which differ following parameters: (i) cost using new sites production; (ii) transport costs; (iii) commodities export; (iv) flexibility operation (DR) shaft furnace; (v) location demand. results reveal cost-efficient spatial allocation electrified capacity impacted by availability low-cost can present - day plants. show additional demand an met mainly increased investments wind solar power natural gas based reduced. Furthermore, it found to be invest overcapacity units (electrolyzers, DR furnaces electric arc furnaces) storage systems hot briquetted iron, so follow variations inherent power.