Low-carbon production of iron and steel: Technology options, economic assessment, and policy

This paper explores existing approaches and potential decarbonization paths of the global iron steel industry: fuel switching to low-C hydrogen, solid biomass, zero-carbon electricity substitution, retrofit with carbon capture storage (CCS). Achieving net-zero primary production current available technologies faces many challenges from plant design fundamentals (BF or DRI), resource availability, footprint uncertainty, cost. Long-term opportunities reach require asset replacement, combining approaches, both. Short-term lie in CCS particularly blue carbon-neutral but only provide low partial GHG reductions. For individual plants, optimal local solution depends on geography, natural resources, infrastructure, economies. Large-scale deployment is limited by policy incentives. Given increased urgency transition economy CO2 emission, governments industry have focus decarbonizing hard-to-abate sectors, including making, which contributes roughly 6% emission 8% energy-related (including power consumption emission). reviews assesses technologies, hydrogen injection, biomass zero-C (CCS) retrofit, combinations these approaches. Blast furnace-basic oxygen furnace (BF-BOF) dominates (71%) stubborn any technology. Direct reduced electric arc (DRI-EAF) 5% growing, it appears better move toward net-zero. Secondary using mainly scrap (EAF-scrap) 24% has both lowest energy technically simplest decarbonize through electrification market share recycled capacity. Of options assessed, neutral appear cost highest technical maturity. However, no single approach today can deliver deep all lead substantial increase. No uniform ideal exists, different geographies, economies will determine optimum viability Policy measures be required financial incentives for avoid unwelcome outcomes such as emissions leakage job loss. A core challenge growing demand services. It widely understood that man-made climate change chiefly caused greenhouse gas emissions, especially dioxide (CO2), consequences warming profound, widespread, destructive.1IPCCSummary Policymakers.in: Masson-Delmotte V. Zhai P. Pörtner H.-O. Roberts D. Skea J. Shukla P.R. Pirani A. Moufouma-Okia W. Péan C. Pidcock R. Connors S. Matthews J.B.R. Chen Y. Zhou X. Gomis M.I. Lonnoy E. Maycock T. Tignor M. Waterfield Global Warming 1.5°C. An IPCC Special Report impacts 1.5°C above pre-industrial levels related pathways, context strengthening response threat change, sustainable development, efforts eradicate poverty. 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Nowhere this evident than industrial sector, grown profoundly rapidly over 20 years.3International Energy AgencyData Statistics, sector.https://www.iea.org/data-and-statistics?country=WORLD&fuel=CO2%20emissions&indicator=CO2BySectorDate: 2020Google Steel, a major sector commercial standpoint, an essential material modern world key component national (Figure 1). used construction, military defense, manufacturing (e.g., automobiles). globally traded commodity, tripled since 2000, 2018 saw $2.5 trillion sales.4Worldsteel AssociationWorld figures 2019.https://www.worldsteel.org/en/dam/jcr:96d7a585-e6b2-4d63-b943-4cd9ab621a91/World%2520Steel%2520in%2520Figures%25202019.pdfDate: also enormous source gases: today’s dominant pathway BF-BOF very intensive (see Table 1), whereas generates 2). From perspective, involves two processes: chemical reduction ore refining (process emission), commonly metallurgical coal coke, high-temperature heat sourced needed operate blast (BF) other reactor.5Friedmann Fan Z. Tang K. Low-Carbon Heat Solutions Heavy Industry: Sources, Options, Costs Today. Center Policy, 2019https://www.energypolicy.columbia.edu/research/report/low-carbon-heat-solutions-heavy-industry-sources-options-and-costs-todayGoogle Unlike there are relatively few manage challenges. non-technical include nature dependencies security economic well-being, small margins most producers, labor politics.6Sandalow Friedmann Aines McCormick McCoy Stolaroff ICEF Industrial Decarbonization Roadmap. ICEF, 2019https://www.icef-forum.org/roadmap/Google Moreover, operating assets long capital lives expected decades, limiting rate range substitute facilities thereby reduce emissions.7Friedmann “Congressional Testimony, House Commerce Committee, Hearing Decarbonization.” CGEP, SIPA. Columbia University, examines near-term (GHG) seeks identify explain pathways hot metal (HM). We examine terms cost, viability, readiness, ability scale. In addition, we assess aspects markets accelerate low-emissions steel. crude exceeded 1,808 million tons had 4.5% growth compared 2017 level.4Worldsteel Three processes contributed 99.6% HM 2) follows:1.Blast (BF-BOF): route industry, involving pig furnace. operation relies almost entirely products, emitting ?70% integrated making). Hot then charged basic (BOF) make (BOF includes process plants coking, pelletizing, sinter, finishing, associated production.2.Electric (EAF): making materials iron, scraps, direct (DRI) product (also referred sponge iron) source. Today, EAF recycling (i.e., secondary production) upgrading DRI iron. operates batch mode instead continuous like plant.3.DRI: directly reduces solid-state reaction temperature below melting point Reducing gases produced (gas-based DRI) (coal-based called syngas, mixture H2 CO. Although efficient BF, additional processing (typically EAF) upgrade market.These feedstocks. The converts raw HM, HM. porous, permeable, highly reactive requires treatment before selling market. One well-known increase significantly (> $120 per ton).8Energy Transitions CommissionMission Possible: Reaching harder-to-abate sectors.https://www.energy-transitions.org/publications/mission-possible/Date: 2018Google issue not lack technological solutions carry high abatement costs, affects share, trade, labor. study focuses full three discussed necessary pre-treatments (such sintering coking produce (not post finishing alloying). Specific methods recover part input quench reusing, top recycling, waste (CCS), case basis. employs BF molten subsequently refined BOF. As technology steelmaking, 71% production, 1,279 2018.4Worldsteel Integrated operations 3) pelleting, sintering, (in BF) plus steelmaking BOF). covers consumption, assumptions listed 1.Table 1CO2 technologyProcessEmission (kg-CO2 ton-HM)aThe U.S. average intensity case: 460 kg/MWhEmission ton-HM)bThe caseBF1,5141,476coke production10197sintering276260pelletizing4635BOF steelmaking229193total2,225c2016 weighted fifteen countries 2238 kg/ton covering > 85% BF-BOF.102,061See Orth et al.9Orth Anastasijevic N. Eichberger H. Low well titania slag production.Miner. Eng. 2007; 20: 854-861Crossref Scopus (67) Google Scholara kg/MWhb casec 2016 BF-BOF.10Hasanbeigi Springer How clean if industry? international benchmarking intensities. 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Elektrotech. 2017; 23: 25-33Crossref Both limitations easy penetration deeper into profile. contrast, higher renewables generation use. consumes DRI, pure feedstock efficiency gains. feedstock, take fraction (from 0% 100%). DRI-EAF combination allows lower used. 90 (5% production),4Worldsteel 100 tons.15Midrex2018 Reduction Statistics.https://www.midrex.com/wp-content/uploads/Midrex_STATSbookprint_2018Final-1.pdfDate: India (coal feedstock) Iran (gas leading DRI. temperatures its at (1,200°C). (commonly monoxide [CO] syngas) typically made either coal. Two main reactions kiln: Fe2O3 + CO FeO CO, still sources CO2. 62% traditional route.16European commissionEuropean Steel: Wind Change, Brussels Seminar.https://ec.europa.eu/research/index.cfm?eventcode=80BB405C-DA08-56D3-800BC46FC9A6F350&pg=eventsDate: potential, given easily replaced mixtures even hydrogen,17Midrex H2Midrex H2: helping steelmakers emissions.https://www.midrex.com/technology/midrex-process/midrex-h2/Date: greater difficulty use because barriers section “hydrogen DRI” below). pathways’ flow diagram shown jointly Figure 4. summaries cover overwhelming majority 99%). Multiple novel under development great replace far future yet commercially available. These HIsarna smelting ironmaking oxide electrolysis (MOE), anticipated enter pilot testing short-term future.HIsarna bath-smelting combines pre-heating pyrolysis vessel working container.18van der Stel Meijer Teerhuis Zeijlstra Keilman G. 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Conference: ICSTI 2018.https://www.researchgate.net/publication/327962750_Direct_Reduction_Transition_from_Natural_Gas_to_HydrogenDate: Scholarpre-treatment suitable ton)5859Orth Scholar42025United States Protection AgencyAvailable emerging reducing Agency, 2012https://www.epa.gov/sites/production/files/2015-12/documents/ironsteel.pdfGoogle Scholar30726Barati study.Energy. 2010; 35: 3731-3737Crossref (26) Scholarelectricity (kWh ton)35627Hasanbeigi Price Aden Zhang Li Shangguan F. Comparison Production Use Intensity China U.S.DOE. https://www.osti.gov/biblio/1050727Google Scholar91827Hasanbeigi Scholar380 DRI)313 DRI)27Hasanbeigi ScholarDRI-EAF ton)N/AN/A91827Hasanbeigi (kg MWh)46028U.S. Information AdministrationU.S. Energy-Related Emissions, 2018.https://www.eia.gov/environment/emissions/carbon/archive/2018/Date: Scholar46028U.S. ScholarHM ton)2,2258421953 (coal-based)1395 (gas-based)bConversion weight assumed 90% (2018 data, DRI15 HM).4 (electricity only)global ton)1,857cOn 2017, 1.9 were emitted every produced, accounts approximately 6.7% emission.29 hypothetical models’ matches emission: 246 kgCO2 ton-HM, 13.3%)See Dey al.23Dey Scholar, Holling Gellert24Holling United Agency25United Barati26Barati Hasanbeigi al.27Hasanbeigi Administration28U.S. gas.b Conversion DRI15Midrex2018 HM).4Worldsteel only)c On emission.29Worldsteel AssociationSteel’s contribution resilient societies - worldsteel positio